information above, Korean Airlines should try harder to make larger cash flows from their business instead of borrowing from the bank. Also, cash flows from investing activities suggest that they should restrain themselves from over-investment.
E. Check the main accounting policies of KAL. Choose one interesting/doubtful accounting policy. Then, comment on the chosen accounting policy
I. M
earns rates of return above the floor, so it has a competitive advantage. Rate of return on equity proves that SK telecom used capital provided by common shareholders effectively.
Comparing them, we could conclude that liquidity of SK telecom was the highest among them.
d. Does the cash flows statement add any further information to that provided by the inco
information if “[t]here is a substantial like likelihood that a reasonable investor would have found the omitted information important or that the missing facts would have altered the ‘total mix’ of information available to the investor.” Thus, a matter is generally thought of as “material” if a prudent investor would reasonably want to know about it. Size of the company could be rele
Academia : the calculation of past earnings growth has nothing to do with predicting future growth
Concentrating on the prediction itself : forecasting future earning is inefficacious.
Wall Streeters
Specialists > Amateur, Individual Investor
Academicians
Specialists’s Portfolio > Random Portfolio (x)
Random Walkers
Stock market adjust quickly to new information
To our Shareholders, Associates and Customers: Let me begin by expressing how proud I am of everything our Associates have accomplished during the fiscal year ended January 31, 2004. Wal-Mart generated over $256 billion in global revenue, establishing a new record and adding more than $26 billion in sales. Your Company earned almost $9.1 billion in net income and grew earnings per share by over 1
from affiliate 159 48 1 1 2
gross profit 2 161 219 93 53
As you can see above, loss from affiliate in 2009 increased a lot compare to 2008. It means that there is insufficient information to evaluate operating performance just by income statements. Thus investigation of cash flow statements is needed. Further analysis regarding cash flow statement will be dealt in problem D.
Information System)을 건립했다. MSSIS는 a)선박 자동 식별장치(AIS) 응답기는 일정한 크기보다 우월한 상업적인 배의 갑판에 착용될 의무가 있고, 바다에서의 충돌을 감소시키도록 고안될 것. b)해안가의 수신기는 AIS 통신을 받도록 배치할 것이라는 신호를 받아 축적된 세계적 교통의 추적 자료의 전자의 저장
-> KAL managed to generate more cash in 2009. However, considering the fact that most of its cash inflow consists of amortization of intangible assets which make company’s cash flow better, Korean Airlines needs to do better in the future to earn more from their operation.
2. Investing – how much did KAL invest for the future?
3. Financing – where is all the money coming from?
SK Telecom offers cellular global roaming services under the brand "T-Roaming" through service agreements with various foreign wireless telecommunications service providers. The company offers global roaming services in three basic technologies, including CDMA, global system for mobile communications (GSM), and wideband code division multiple access (WCDMA). As of FY2009, the company offered CDMA
How did POSCO manage to remain this rate of ROA and ROCE?
1) Expanding facilities and increasing investments in mine exploration.
2) Engaging in the rapidly growing Southeast Asia market and also the US market.
3) Strengthening global automotive steel sales and marketing infrastructure.
As a result, in 2008, POSCO accomplished record-setting production of 34.7 million tons and sales of 33