investors to understand how a company's operations are running, where its money is coming from, and how it is being spent.
Due to the accrual accounting, the income statements released each quarter may not necessarily reflect changes in their cash positions. For example, if a company lands a major contract, this contract would be recognized as revenue (and therefore income), but the company may
(2) Trend income statements
(%) 2009 2008 2007 2006 2005
sales 338 367 191 143 100
gross profit 4 301 409 174 100
operating income -330 254 479 179 100
income before income tax -906 128 482 169 100
net income -15,685 2,123 7,877 1,120 100
From comparative income statements and trend income statements above, we can see that net income in 2009 plunged dramatically. However, compare to 2
investors. Especially, although Royal dutch shell has a little up and down change, it is just slight amount and absolute numerical value is higher than Chevron. So it can be said to be more attractive to investors. But Chevron is also attractive.
4. EPS
If EPS shows high ratio, the value to invest this company is increasing.
EPS is measure of return on investment that is based on the number
foreign exchange. Considering recent trend of weak Korean Won(\) currency, Korean air would probably show similar pattern(low other income and high other expense) or even worse in 2008.
- Overall, both company's level of net earnings is extremely low which means their business is not going well.
Balance Sheet - Common Size
Assets
AMR Corp Korean Air AMR Corp Korean Air
2007 2007 20
Ratio (부채 비율)
Leverage가 주는 효과
- 분산투자가 가능
- 투자회사의 가치증대에 기여:
법인세 감소효과
경영자 지분의 증가로 Incentive to work의 증가
부채상환으로 Free Cash Flow의 낭비를 줄임.
Holding Periods for KKR buyouts done between 1977 and 1990, as of 12/31/97
Holding Periods for KKR buyouts
장기투자와 성공적인
1. Introduction
When will not occur a environmental contamination, but will be able to produce an added value and the travel industry which frequently even as the industry `which is not `chimneys soaks from the intention which is an industry 1989 journey abroad completely, the mouth departure from a country with the after that foreign countries which is liberalizeed came to be free from provi
ratio increase / Current ratio decrease
Frequently used method for “window dressing settlement”
On average companies’ A/R turnover ratios close to the industry average of 20.7
Trend of decreasing as year passes
Chipotle Mexican Grill’s (CMG) A/R turnover ratio continually increasing:10~20times higher than industry average.
CMG’s current asset’s 42% and total asset’s 25%
Foreign exchange and translation losses
146,736
5111.0
12,079
420.7
2,871
100
Loss on valuation of s-t investment securities
7,758
-
1,203
-
-
-
Equity in losses of affiliates
258,547
121.9
249,425
117.6
212,109
100
Impairment loss on investment securities
218,729
799.9
4,386
16.0
27,344
100
Loss on disposal of investment assets
7,916
227.1
81