Finance and Portfolio Management Assignment 4 Example | Topics and Well Written Essays - 1000 words

Finance and Portfolio Management 4 - Assignment Example4. Acquisitions including Sun Microsystems, Siebel, I-Flex, PeopleSoft and others, may involve out of the blue(predicate) costs, and integration issues that may disrupt existing operations. 5. Risks relating to foreign currency gains and losses and risks relating to compliance with international and US laws that may adversely affect international sales and operations. 6. Risks of reducing prices or losing customers due to intense contestation and rapid technological evolution. Source http//www.wikinvest.com/stock/Oracle_%28ORCL%29/Filing/10-Q/2011/F94876420 Company Performance and Financial Ratios Compared vs. assiduity Average/ S&P 500 Growth Rate % Oracle Corp. Industry Average S&P 500 sales (Qtr vs. year ago qtr) 36.90 23.80 12.10 solve Income (YTD vs. YTD) 13.50 5.60 5.90 Net Income (Qtr vs. year ago qtr) 78.00 51.50 60.60 Sales (5-Year Annual Avg.) 17.85 14.05 7.98 Net Income (5-Year Annual Avg.) 16.28 11.74 8.03 Divide nds (5-Year Annual Avg.) N/A 4.76 5.30 Price Ratios % Current P/E Ratio 21.3 32.9 19.3 P/E Ratio 5-Year High NA 23.6 18.4 P/E Ratio 5-Year first base NA 8.4 2.6 Price/Sales Ratio 4.73 10.33 2.20 Price/Book Value 4.43 4.69 3.60 Price/Cash strike Ratio 15.40 20.60 15.30 Financial Condition % Debt/Equity Ratio 0.40 0.30 1.18 Current Ratio 2.9 2.4 1.4 Quick Ratio 2.9 1.8 1.0 affaire Coverage 14.4 21.3 83.8 Leverage Ratio 1.8 1.9 3.8 Book Value/Share 7.24 8.16 25.45 Profit gross profits % Gross Margin 75.3 74.9 39.0 Pre-Tax Margin 30.0 3.4 17.4 Net Profit Margin 22.4 22.3 12.8 5 Yr Gross Margins (5-Year Avg.) 78.1 76.1 38.8 5Yr Pre-tax Margin (5-Year Avg.) 33.1 26.2 15.6 5 Yr Net Profit Margins (5-Year Avg.) 23.7 17.9 11.1 Investment Returns % Return On Equity 23.7 27.0 23.4 Return On Assets 12.1 13.6 8.3 Return On corking 15.3 19.5 10.9 Return On Equity (5-Year Avg.) 24.7 26.1 19.6 Return On Assets (5-Year Avg.) 12.5 14.0 7.7 Return On Capital (5-Year Avg.) 16.4 20.3 10.2 Managemen t qualification Income/Employee 73,655 122,961 112,643 Revenue/Employee 328,520 495,504 990,090 Receivable Turnover 8.2 7.3 14.4 Inventory Turnover 28.7 58.6 11.8 Asset Turnover 0.5 0.6 0.8 Source http//moneycentral.msn.com/investor/invsub/results/compare.asp?Page=TenYearSummary& attribute=ORCL Based on the table presented above Oracle Corporations Performance and Financial ratios is relatively better or at par with industry average and with S&P 500. Gowth rate is high than industry average. The price ratios and interest coverage is lower than industry average. There is a clear diversity in Oracles Investment Return Ratios and Management Efficiency Ratios particularly in income and gross per employee. This low income/employee and revenue/employee ratios show that Oracle employees generally earn less than the industry average. In the want run this is crucial to Oracles operation as this relates to employee satisfaction and performance. It is also seen that no entropy is availab le on dividends paid as Oracle Corp have not consistently declared or paid dividends in the past years. The company is geared towards reinvesting funds in acquisitions and tends to delay recompense of dividends to stockholders. Reinvesting on its internal customers, the stockholders and the employees, is evidently low. Bonds Maturity Date Interest Price Yield % Oracle 5.75% 04/15/2018 5.75% 155.50 3.21 Oracle 144A 5.375% 07/15/2040 5.375% 101.90 5.25