英语论文网

rket and to its competitors. If we look into the past five years of net income earned by RIM it shows that in the year 07/08 it had the most increase in terms of net profit. There was an increase of 105 percent which is astounding. On the other hand its competitor Apple Inc had an increase of only about 38 percent in the same year. This shows RIM improving its business operations and efficiency to an immense extent. As net profit is the last entry in the income statement we now move onto the balance sheet.

Balance sheet lists the assets the company owns and liabilities what the company owes to others. It's basically the net worth of the firm as to how much is its worth. The most liquid asset would be cash and is one of the most crucial ones. As profitable firms making profit can go out of business because of the reason of not having enough cash. This creates insolvency. It is crucial for the management of the company that they take this in contention seriously. Cash is decreasing and then in turn increasing the year after for RIM. There has been not a lot of stability as if we compare the year 05/06 there is a reduction in cash for the company but the year 06/07 there was an increase in cash. As coming to the next year (07/08) there was an increase in cash substantially by 67 percent, and then a reduction in the final year of 08/09. This asset has to be managed effectively, if not, then the consequences are pretty dramatic. Property plant and equipment in the last five years has grown swiftly. In 2005 the value for it was around $210(value in millions) as compared to $1334(value in millions) in 2009. This shows a very sustainable increase. Now coming to the liabilities section we can see the accumulated retained earnings were in deficit in the year 2006 but RIM recovered well following up the next year eliminating the deficit and increasing its retained earnings the most in the year 07/08. As now we have compared the company using its financial statements we now come to the main assessment and performance of the company by using financial ratios.

We first look into the prospect of growth ratio. Seeing a five year average for sales there has been an increase of almost 80 percent for RIM as compared to the Apple Inc which is around 34 percent. Clearly RIM dominating here in terms of growth in sales for the past five year average. We move on to the profitability ratios, gross margin ratio which is gross profit over sales. It's basically the difference between the revenue and cost of the production. The gross margin ratio for RIM for an average five years is around 50 percent as compared to Apple Inc which is around 33 percent. RIM has a slight edge here as comparing to Apple. If there is a reduction in this ratio then this means that there is stiff competition and a rise in the cost of purchases. The selling prices decline as well. On the other hand if there is an increase in this ratio the company clearly would have a competitive advantage over its rivals and so the selling prices increase eventually. RIM has a competitive advantage over Apple Inc here then. Moving on to the next ratio which is crucial in analyzing the performance of the company in its financial perspective would be return on capital employed. A ratio that indicates the efficiency and profitability of a company's capital investments. (Investopedia, 2009)

Calculated as: EBIT( earnings before interest and tax)

RIM's return本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。