Financial analysis of Autonomy Corporation - Essay Example

Only on StudentShare

Extract of sample
Financial analysis of Autonomy Corporation

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. ...
Download paper

Summary

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…
Author : schimmelanika

Related Essays

Financial Analysis
They also state that the market value is not determined by the dividend policy. In relation to the irrelevance of dividends, two theorems are applied; these are Modigliani-Miller approach and residual theory (Thompson & Mathew 82). Q2. The major assumption behind the residual income valuation model is the clean surplus relationship, that stresses the relationship among book value per share, dividends and earnings: BV1 = BV0 + EPS1 - D1. It means that all the accounting profits and distribution to shareholders can be explained by changes in the book value. Another assumption is that the ohslon...
6 pages (1506 words) Coursework
Financial Analysis and Forecasting
analysis shows that there exist a perfect relationship between sales and assets. The value of R-square is 1 this shows a perfect relationship that will produce a best-line-of fit that passes through the origin. The proportionality assumption that the value of assets increases proportionally with sales is therefore, holds, and is true. B) Repeat the part a regression analysis assuming the given data. Under these conditions, does it appear that the proportionality assumption holds true? Explain. From the results obtained below, the R squared value is 0.906304 this shows a good relationship...
7 pages (1757 words) Coursework
Financial Analysis for Kroger Co.
For an industry like Kroger’s, the most important factor for consumers is price. The products available in supermarkets are not differentiated and therefore they cannot be advertised heavily. Much of the advertisement that is done is carried out on the basis of attracting families to shop at Kroger because it is cost effective to do so. Apart from being cost effective Kroger also has products of high quality which makes it popular among American consumers. Kroger Co. has 42 manufacturing plants and including dairies, beverages and meat plants and all of these plants are of the highest...
9 pages (2259 words) Research Paper
Tesco Plc Financial Analysis
Furthermore, Tesco operate online sales of product which has seen them expand internationally and get customers all over the world. There are reasons as to why Tesco is customers’ favorite store in the UK. Tesco have got a well analyzed capital structure which supports the growth of business plan with consideration of their expertise in the financial system and cash management. Tesco also has a business that deals in banking. In its finance department, Tesco has schemed on operation of its business and financial strategies which is inclusive on debt, financing, equity, and capital...
8 pages (2008 words) Coursework
Financial analysis
There are various as to why a firm can be profitable and experience cash flow problems at the same time. This case study will discuss the reasons as to why the firm is experiencing cash problems and provide recommendations on how it can improve its cash flow. Cash flow is the ability of a company to meet its financial obligations. A negative cash flow prevents a company from meeting its debt payments like in the case of Cape Chemicals. It is important for Cape Chemicals to analyze the reasons leading to the negative cash flow while still reporting an increase in the profits. By doing this, it...
5 pages (1255 words) Case Study
Pros and Cons of Horizontal and Vertical Analysis
The above table presents the horizontal analysis of Nike for the three quarters such as Q2, Q3 and Q4 ending November 2012, February 2013 and May 2013. In the horizontal analysis, each line item of income statement is divided by the total revenues figure in order to check the percentage of that line item with respect to sales. If cost of sales of Nike is considered, it can be observed that it has remained quite consistent in all the three quarters and remained around 56% of sales (Nike Inc., 2013). Accordingly, the gross profit margin of the company is around 44%. Nike incurs substantial...
4 pages (1004 words) Essay
Financial Analysis for Managers
However, the highly competitive nature of today’s corporate world has given rise to an essence of unethical behaviour which underlies a majority of business operations; in order to ensure their success. Many a times, unethical behaviour in the workplace has an immense negative impact on the organization and its employees. These effects can be psychological, financial, social, or even bureaucratic in nature. Financially speaking, if a company adheres to unethical means, then it endangers its image in the eyes of the public, and less people would be interested in dealing with the firm. These...
2 pages (502 words) Article
Got a tricky question? Receive an answer from students like you! Try us!