In 2010, Halliburton produced revenue of $17,973 billion and operating income of $3,009 billion, reflecting an operating margin of approximately 17%. Revenue increased by $3,298 billion, or 22% from 2009, while operating income increased $1,015 billion, or 51% from 2009. According to Halliburton’s 2010 Annual Report, “these increases were due to its customers’ higher capital spending throughout 2010, led by increased drilling activity and pricing improvements in North America” (Hal 2010 annual report). However, Halliburton remains cautious because of the shifts in oil and natural gas prices and supply/demand factors. These “shifts” are important for equipment and services providers in the oil and gas industry because it affects the capital spending decisions of oil and gas producers as well. Major oil companies and nationalized oil companies (known as the upstream producers) are the lifeblood of the oilfield service industry. These upstream producers want high-growth and low-cost opportunities (Glickman). It is therefore necessary for Halliburton to evaluate its performance and analyze its financial position compared to other companies in the industry in order to be prosperous and successful. Important factors of a company’s outlook are its financial strength and weaknesses. These factors can be evaluated by reviewing the firm’s financial statements and using ratios to help measure a company’s liquidity, leverage, activity, profitability, and growth. Financial ratios are computed by using the information found in a company’s financial statements: primarily income statement and balance sheet. The calculations from the current year, previous years, and other companies in the industry are used as a basis to identify and ev... ... middle of paper ... ...ewart ,CFA. 2011. " GICS Sub-Industry Summary: Oil & Gas Equipment & Services." Standard and Poor's. 29 Sept 2011. Web. 8 Jan 2012. . halliburton.com. Halliburton. 2011. Web. 2 Jan 2012. . hoovers.com “Halliburton Company.” 2011. Hoovers: A D&B Company. Web. 2 Jan 2012. . Lokey, Colin. “Halliburton And Schlumberger Will Benefit From An Increase In Oil Majors' Capital Expenditures.” Seeking Alpha. 26 Dec 2011. Web. 8 Jan 2012. .
The defense of our nation and its allies across the globe is essential to the success of the world we live in. The methods in which this defense takes place varies in many different ways, in air, on land, and at sea. Within our nation lies some of the largest defense organizations on the face of the planet, most, if not all, of which strive to protect the United States of America in all arenas. One of these organizations is Northrop Grumman. Northrop Grumman is one of the largest global aerospace and defense technology companies in the world. The company employs over 68,000 employees worldwide, and was named as the fourth-largest defense contractor in the world in 2016 (Forbes, 2016). It grossed over $23.526 billion in 2015. Northrop Grumman
Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories, profitability, asset utilization, liquidity and debt utilization ratios. The ratio analysis covered here consists of eight various ratios with at least one from each of these main categories. These ratios were used to compare and contrast the performance of Verizon versus AT& T over the years 2005 and 2006.
Lockheed Martin is an organization that heavily relies on its defense contracts in order to generate revenue. In 2005, 95% of Lockheed Martin’s revenue came from the US Department of Defense, other US Federal government agencies and foreign military customers (Defense News, 2007). Lockheed Martin earns this revenue by winning government contracts. As previously noted, Lockheed Martin has a large customer base with the US Department of Defense. The company is the largest provider of IT services, systems integration, and training to the government (Lockheed Martin, 2008). Other customers that provide revenue for Lockheed Martin are international governments and some commercial sales of products and services (Lockheed Martin, 2008).
The first method we will review is the accounting method. Through this accounting approach we will analyze specific ratios and their possible impact on the company's performance. The specific ratios we will review include the return on total assets, return on equity, gross profit margin, earnings per share, price earnings ratio, debt to assets, debt to equity, accounts receivable turnover, total asset turnover, fixed asset turnover, and average collection period. I will explain each ratio in greater detail, and why I have included it in this analysis, when I give the results of each specific ratio calculation.
Part II: Financial Analysis Section 1: Business Analysis Honeywell International Inc. (see also, attached Excel spreadsheet) Honeywell International Inc. operates as a technology and manufacturing company all over the world. It is an American multinational company that produces a large variety of commercial and consumer products, as well as engineering and aerospace systems for major companies and international governments. It is a Fortune 100 company, and in 2012 was listed as number 77 in the Fortune 500 America ranking.
Organizations use financial statements and ratio analysis assess financial performance viability. The ratio analysis are used to identify trends and to perform organizational comparison (financial) with other companies within same industry. Ratio analysis, using data reported on the financial statements, are divided into five major categories: common size, liquidity, solvency, efficiency, and profitability. This paper will assess the financial stability of John Hopkins Hospital (JHH) using the five ratio analysis.
The objective of this paper is to analyze and discuss some of the Boeing Company's business decisions using their strengths, weaknesses, opportunities and threats, also known as an S.W.O.T. analysis which is defined as, "a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats. (Nickels, McHugh, McHugh, page 216)". This is a very powerful tool usable by any business that is just starting out, going through a change in direction, or in the process of a major merger. The SWOT analysis consists of a few simple steps which can provide valuable insight for direction and decision making. This paper will use The Boeing Company as an example of SWOT analysis application.
Two best indicators are whether the company is recording gains in financial strength and profitability and whether the company’s competitive strength and market standing are improving. (69)
...rs, setting a good trend for the corporation. They also have a very low debt-to-equity ratio, indicating that they have enough equity to easily pay off any funds acquired from creditors. As a creditor I would feel safe in lending them funds for any future projects or endeavors.
Any successful business owner or investor is constantly evaluating the performance of the companies they are involved with, comparing historical figures with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of any company's effectiveness, however, more needs to be looked at than the easily attainable numbers like sales, profits, and total assets. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining Ford Motor Company's financial ratios, along with a few other company factors, this report will give a clear picture of how the company is doing now and should do in the future.
Lockheed Martin is headquartered in Bethesda, Maryland principally engaged in global security and aerospace sustainment technology systems. This company is a large proponent of my work, and one of the largest military contractors. As a manufacturer of aircraft and components, and one of the two main competitors for the government’s business, Lockheed Martin engineers some of the major lines of defense that I see and work with every day. My job revolves around whether these defensive tools will perform as advertised in order to help us complete our mission. Innovation drives this company to be a financial giant not only in this decade, but for over a century. The history of the company is quite extensive, beginning as a small, few man show
In every industry, there are a lot risks that cause many uncertainties regarding the financial security of different corporations; risks in the short run and in the long run. For that reason, large corporations often allocate a large amount of capital into competent risk managers who are tasked to identify the different risks faced by the company, and to develop efficient risk managing or hedging techniques to handle them.
A company with an annual revenue of $41.4 billion must be financially sound, right? The answer is…“not necessarily!” However, there are tools available that will help determine if our selected company is financially sound. Ratio analyses are those tools used to evaluate the performance of a business and identify potential problems.
For Chesapeake Energy (NYSE: CHK) things aren’t looking good. The stock has lost more than 57% of its market capitalization so far this year. This drop in the stock’s market capitalization is due to a variety of factors such as suspension of preferred dividend, recent debt exchange and continued slump in the oil price.
The oil and gas industry, today, striving to discover a harmony between climbing worldwide request and lessening assets, and keep up control and circulation of working expenses. In the oil and gas industry today, most organizations are looking to expand the productivity of their worldwide portfolios during a period of developing questionable matter. Keep up superior ¬ pleasant pussy against high expenses, high costs, and expanded rivalry were never all the more testing.