StudentShare solutions
Triangle menu

Companies Research - Essay Example

Not dowloaded yet

Extract of sample
Companies Research

Total Asset Turnover has been on the high for Kroger and Wall-Mart with 3.487 and 2.335 respectively. Eaton has failed to maintain a high ratio; its turnover ratio stands at 0.795. Eaton Corporation has struggled in this regard as well, which is evident by its last position in the industry with respect to earnings produced with each dollar spent on an asset. Total Debt to equity ratio has been high for all four organizations but Kroger Co. crosses all boundaries with a ratio of 141.81:1. Wall-Mart stands second with 81.39, and Eaton is third with a ratio of 46. Chevron is a relatively low leveraged firm, which is indicated by the minimal interest payments it has to make. Chevron, being the most profitable company, leads the chart in terms of times interest earned with a ratio multiple of 381. For the current year, Chevron had interest payments of only $50,000. Wall-Mart is the second company to make substantially high returns out of the debt it takes with a multiple of 8.43. Kroger Co. is not surprisingly at the bottom of the chart with only 3.49. Return on Sales/Net profit margin has been impressive for Chevron with 9.55%. Eaton Co. also practices a higher return on the sale with 6.77%. The Kroger Co. again is at the bottom of the chart with 1.38% return on Sales. Return on Assets is the earnings made with each dollar spent on an asset. With the highest net income Chevron Co. again tops the list with a return of 10.94%. Wall-Mart takes the second spot with 8.91% and Eaton Co. being the last of the four with 5.46%. Moreover, the return earned on every dollar of equity is the highest for Wall-Mart. This means that Wall-Mart provides the highest return to a shareholder, which is the objective of a corporation. Kroger Co. takes the second spot with 22.87%. In addition to it, Chevron has an equity centric structure hence it takes the third spot out of the four with 21.33% while Eaton creates the lowest return for their shareholders with a return of 15.9% rests at the bottom. By comparing P/E ratio, one can analyze the market’s stock evaluation for a company. P/E is directly proportional to forecasted earnings hence a rise in P/E is a resultant of increased expectation for earnings (Besley and Brigham, 2000). The Kroger Co. tops the list with a P/E multiple of 12.64. It could be inferred that investors expect higher returns in the future for Kroger Co. Eaton Corporation follows with 12.17 and Chevron being the last with 8.53. Lastly, Market to Book Value ratio is used to compare company’s market worth to its book value. It gives an idea of whether an investor is paying adequate money for his investment or more (Levinson 2006). It is calculated by the company’s market capitalization divided by the value in company’s books. Wall-Mart tops the list with 2.76, followed by Kroger Co. with 2.69 and Chevron taking the last position. 1. Chevron is an oil and gas manufacturing and exploration company, Eaton Co. is a transport/truck manufacturer, whereas Kroger Co. and Wall-Mart are in the retail industry. I would rank Chevron as the leader of the ...Show more

Summary

Ratio Formula Chevron Corp. (CVX) Eaton Corporation (ETN) The Kroger Co. (KR) Wall-Mart Stores Inc. (WMT) Current Ratio 1.53 1.74 0.87 0.9 Total Asset Turnover 1.08 0.795 3.497 2.335 Times Interest Earned 381.48 7.83 3.49 8.43 Total Debt-Equity 9.89 46.01 141.81 81.39 Return on Sales 9.55% 6.77% 1.38% 3.885% Return on Asset 10.94% 5.46% 6.29% 8.91% Return on Equity 21.33% 15.9% 22.87% 23.44% P/E Ratio(trailing) 8.53 12.17 12.64 11.26 Market to Book Value Ratio 1.69 1.74 2.69 2.76 *Note= mrq = Most Recent Quarter (as of Apr 30, 2011)  trailing = Trailing Twelve Months (as of Apr 30, 2011) Following is a description of how Chevron Corp., Eaton Corporation, the Kroger Co…
Author : shyanne00
Companies Research essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Companies Research"
with a personal 20% discount.
Grab the best paper

Related Essays

One Of The Hong Kong Listed Property Companies Invites Your Research Institute To Formulate A Research Proposal To Them
This study formulates a research proposal for the housing magnate Cheung Kong that could place the firm on the leading edge of corporate social responsibility. The proposal is based on a belief that the government and political climate of Hong Kong is much influenced by its business environment and its industrial leaders and that Cheung Kong, a major building, project management and investment business, could undertake a project of subsidized housing in partnership with the government that would continue Hong Kong's economic growth while also pursuing a determined plan of distributive justice among its marginalized elderly population for housing.
12 pages (3000 words) Essay
Research proposal: Investigating the Internationalisation Ambitions of Biotechnology/Life Sciences Companies in Denmark
Biotechnology companies are knowledge – based companies that provide useful products, including drugs, products for industrial and agricultural applications, enzymes, vaccines, molecular and medical diagnostic solutions, therapeutics, solutions for tissue engineering, solutions for Genomics, Proteomics and Enabling Technologies, etc.
8 pages (2000 words) Essay
Why cant pioneering innovative companies sustain their first mover advantages A case analysis of Research in Motion
Why can’t pioneering innovative companies sustain their first mover advantages? A case analysis of Research in Motion. Research in Motion, now conducting business under the name Blackberry, is a Canadian-based telecommunications company that experienced significant industry laurels for its innovative launch of the Blackberry branded tablets and smartphones.
11 pages (2750 words) Essay
Research Proposal for An overview of the application of diversification strategies in British mobile telecommunication companies
Besides being a voice and data mobile telecommunications services gadget, the mobile instrument serves as, a computing device, a radio and TV receiver, storage for music, video streaming, live chat, internet access device etc. The technology is a big craze with the youth segment in particular.
6 pages (1500 words) Essay
Online Companies
This is an indication that the pace of internet commerce is growing rapidly but this time without the extreme speculations that caused the crash in 2000 (De Kare-Silver, 2000). Businesses are challenged not only to excel in their trade but now must be able to bring that trade to fresh waters and beyond their comfort zones (Perner, 2004).
7 pages (1750 words) Essay
Research evidence suggests that the great majority of western multi-national companies decide against sending female expatriates to non-western countries. Evalu
Another issue, which refers mostly to the differentiation of expatriates from managerial staff in general, is the size of the company involved. In this context it has been found that ‘whereas domestic and multidomestic companies hire
4 pages (1000 words) Essay
(i) Choose a business or not-for-profit organisation.(ii) Research current strategies using on-line or hard copy sources. Data on chosen companies must be available through Datamonitor via the electronic library. Your reports should include:
The business is in the retail industry that contributes about 9 percent of the gross national product. The main competitors of Tesco in the industry are Asda, Sainsbury, and Morrison. In
16 pages (4000 words) Essay
Research, identify and discuss technologys influence on society, as well as at least three ways it has changed the way companies do business
However, research has identified much more extensive ways that technology has improved society and changed the way companies do business. First,
2 pages (500 words) Essay
Research two of the best companies to work for in America
The two best companies to work for in America, when one examines them from every angle, including the “extra little something,” are Google and Boston consulting
2 pages (500 words) Essay
The Marketing and Consumers unit objectives include developing an understanding of marketing in leisure. One way that companies develop a wider marketing strategy is through market research- using primary and secondary sources
Premier Inn is one of fastest growing hotel brands located in UK and has over 600 budget hotels. The hotel has 35000 employees who serve over 1,000,000 customers monthly. Therefore, for this company to satisfy its
2 pages (500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation