StudentShare solutions
Triangle menu

Financial Analysis of Abiomed Incorporation - Research Paper Example

Not dowloaded yet

Extract of sample
Financial Analysis of Abiomed Incorporation

The potential for growth mainly lies with such companies as once these companies start coming back to profitable tracks they provide good returns especially to those investors who put their investment at stake in the bad times of those companies. However, the risk of losing money also exists such that there are chances that these companies may perform even more sluggish operations which in turn lead them towards the way to bankruptcy. Company Overview Among those companies which are going through their struggling phase of life, Abiomed Inc. is one of those companies. The company mainly develops surgical products especially for heart failing patients and provides those equipments to hospitals. This report provides a financial analysis of Abiomed Inc. for the past three years, as well as with its industry giant Medtronic Inc. This financial analysis is conducted with the help of ratio analysis in respect four broader categories which are 1) Profitability, 2) Efficiency, 3) Liquidity, and 4) Solvency. Competitive Environment and Market Conditions The competitive environment for medical and surgical equipments is quite intense especially for the equipments, which facilitate heart failing patients. The financial position of Abiomed Inc. is not as stable and strong as its competitors possess. The competitors can provide better equipments as they have latest technology and better infrastructure as compared to Abiomed Inc. These competitors have a tendency to give tough time to Abiomed Inc. in such a manner that they can provide those surgical equipments either at the same or even relatively lower prices to the customers. As a result, Abiomed Inc. needs to put more focus on building their financial position stronger in order to compete on better footings. Profitability Ratios Return on Stockholder’s Equity Return on shareholder’s equity describes as how much percentage of equity is being generated as net income. Due to experiencing negative earnings i.e. losses ABMD’s return on equity remained in negative zone for all of the three years. However, the most promising sign for the company is that the company is moving in a right direction such that its percentage has been improved from -27% to around -11% which is a positive sign. By taking a look at the performance for Medtronic, its percentage has also been increased from 15% to 19% which is a better sign. Overall it can be inferred that both the companies improved their return on shareholders’ equity mainly due to increasingly improved industry conditions. This ratio is quite meaningful and important to investors especially as they are more concerned in assessing as to how much their equity has earned in the form of income for the company. Return on Shareholder's Equity Year ABMD Medtronic 2011 -11.22% 19.39%     2010 -17.62% 21.18%     2009 -27.24% 15.70% Return on Assets Return on assets is also a good profitability indicator such that it describes the efficiency of assets to generate income for the company. Companies are more interested in knowing as to whether the assets they have deployed in the operations of the business are worthy and capable of generating income or not. If the performance of the assets of ABMD is taken into ...Show more


Abiomed Inc. – Financial Analysis Executive Summary The financial performance of the Abiomed Inc. has been analyzed in this report such that the ratio analysis is the technique which is used to cover this financial analysis. Abiomed Inc. still in its loss making era, however, there are chances that the company might turn into profit zone in upcoming years…
Author : jerrell66
Financial Analysis of Abiomed Incorporation essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Financial Analysis of Abiomed Incorporation"
with a personal 20% discount.
Grab the best paper

Related Essays

Nautilus Incorporation
Financial Analysis – Nautilus Inc Executive Summary The financial analysis of Nautilus Inc. over a period five years from 2007 to 2011 has been conducted under this article by utilizing suitable ratios and computations. If the financial results of the company are analyzed in a summarized way, it can be concluded that the company has not performed in a sustainable and healthy manner.
6 pages (1500 words) Research Paper
Financial Statement Analysis Project
Since there is no shipping charges on the cost of the items to be delivered it is highly preferred by its customers because after browsing through the items from home the product gets delivered at doorstep in few days. The major success of took place in the year 1997 when the inventories rose to 200000 titles at the year-end.
8 pages (2000 words) Research Paper
Financial analysis research paper
Financial analysis and planning signifies meeting organizational strategic goals and objectives on the monetary basis. It is the fiscal estimation of each and every organizational activity to be carried out. It notifies either business expedition should be performed or not by exemplifying the financial output overview.
8 pages (2000 words) Research Paper
Financial Analysis of Nokia
Key financial ratios have been calculated from the published financial statements to assess the relative performance of the Company. The financial strength of a company can be assessed by studying the way in which the company has managed the various components of its working capital such as accounts receivables, inventory and cash.
6 pages (1500 words) Research Paper
Google - Financial Statement Analysis
the company can generate revenue with the Google Adsense and Adwords program being designed to give companies a way to provide tailored advertising to their viewers (Edgaronline, 2010). Google has a number of free internet services it offers, and is constantly innovating with
5 pages (1250 words) Research Paper
Financial Analysis
In order to analyse Can Go’s financial strengths and weaknesses, in comparison to the industry average ratio, this paper will analyse the leverage, profitability and efficiency aspects of the company.
2 pages (500 words) Research Paper
Financial analysis
company, then the financial performance and financial statements of the company would reflect such appreciation from the consumers with high profits and high volume of sales. This report presents a financial analysis of two mobile manufacturing companies; Apple and Blackberry.
19 pages (4750 words) Research Paper
Financial Statements Analysis
Financial ratios are tools that help to interpret a company’s financial planning, and its performance during the existence of the business. It allows the company to compare own activities with respect to previous years as well as among
4 pages (1000 words) Research Paper
Financial Statement Analysis
This paper seeks to determine the leverage position, liquidity, profitability and efficiency of Yum! Brands, Inc. Analysis of financial statements of an entity give a clear insight of the nature of entity, its performance,
6 pages (1500 words) Research Paper
Financial analysis project guidelines
The company’s other similarly popular coffee brands are Seattle’s_Best Coffee, Ethos, La_Boulange, Teavana and Tazo (Starbucks, 2015). Further, the company’s financial operations are divided into
6 pages (1500 words) Research Paper
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
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation