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Financial analysis of Autonomy Corporation - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Center of discussion in this paper is Autonomy Corporation, a technology company founded in 1996. The majority of the technological advances the company markets came from research efforts from an alliance with Cambridge University…
The present study would focus on the Autonomy Corporation is a global enterprise that has dual corporate headquarters in Cambridge, United Kingdom and San Francisco, USA. The company has a presence in four continents: North America, South America, Europe, and Asia Pacific. The firm has more than 400 major clients including Oracle, IBM, HP, and Novell which are users and supporters of the firm’s technological products. This paper will analyze the financial standing of the company based on the use of financial and ratio analysis. In fiscal year 2010 Autonomy Corporation generated $870.36 million in sales (Morningstar, 2010). The sales total of the company increased by 17.66% in comparison with the previous fiscal year. The average selling price of the company was $790,000 which is a stable metric in this industry. The firm achieved a net profit of $296.21 million in 2010. The profitability of the company in 2010 is outstanding due to the fact the net margin of the company was 34%. The net margin of the company was very impressive considering the fact that the industry net margin in the software industry is a very low 1.7%. The net margin is a financial ratio that measures the absolute profitability of the business. The net margin of Autonomy Corporation in 2010 was 32.3% higher than the industry average. The gross margin of the company was an outstanding 87%. The gross margin is a broad measure of profitability. ...
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