Lies Youve Been Told About Extracurricular Activity Essay Samples

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The Definitive Solution for Rough Draft Example for Research Paper

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Financial Performance Of The Nokia Corporation Finance Essay - Free Essay Example

Nokia Corporation is a Finnish multinational telecommunication corporation having its headquarters situated in Keilanieme, Espoo. It is one of the worlds leading mobile phone suppliers and fixed telecom networkers. Nokias engaged in the manufacture of mobile devices and in converging Internet and communication industry. It offers an extraordinary Internet services platform called as Ovi which allows all its customers to buy digital content, such as music and videos, get maps for navigation services and manage contacts and photo files online. The Company operates in three business segments: Devices and Services; NAVTEQ, and Nokia Siemens Networks. It has over 123,000 employees spread over 120 countries. Its subsidiary Nokia Siemens networks produces telecommunications network equipment, solutions and services. It also provides free digital map information and navigation services through its wholly owned subsidiary NAVTEQ. Nokia being the worlds largest manufacturers of mobile telephone has a global device market share of 30% in the latest financial report taken in the third quarter 2010. But however, it is still a disappointment to see a dip from an estimated 34% in the third quarter of 2009 and from an estimate of 33% in the second quarter in 2010. In this report, the financial performance and the marketing strategies of Nokia is analyzed based on the various financial ratios. The financial report of the past five years from 2009 2005 is studied considering the change in the marketing strategies implemented in 2005 and the global recession which has been hitting the market lately..The marketing strategy of Nokia is studied in the light of PESTLE, SWOT and BCG matrix. FINANCIAL PERFORMANCE OF NOKIA: In the modern business, the managers should have a good understanding of the various business functions in order to make effective decisions and plannings for the successful operation of the business. One of the key functions of the business is bringing together the financial information of the company which is in the form of a cash flow statement, profit and loss account and balance sheets and carrying out the necessary calculations to determine the financial position of the company. The sales volume, and profitability generated from the shareholders investment, the companys ability to pay its debtors and the companys position compared to its competitors help not only the management but also the investors in determining whether to invest in the companys share or not.[1] The financial statement of Nokia is analyzed in the light of the various financial ratios such as Profitability, Activity, Solvency, Financial structure and Stock Market Measures. These ratios interpret the various items found in the companys balance sheet and income statements. This process not only reviews the past results of Nokia but also helps in evaluating the current situation of the company. The financial performance graph exhibited by Nokia in the past five years has been a fluctuating one.(cont) PROFITABILITY ANALYSIS: Profitability analysis is an analysis that enables a company to evaluate the market segments. It allows them to report the sales and profit data of a company using the different customised characteristics and key figures. This analysis can be categorised on the basis of products, customers, orders or any combination of these. Using these profitability calculations, the business profits made in one year can be compared with the other years and also the profitability of different business can be compared. The aim of this system is to provide the various departments within the organisation namely marketing, product management and corporate planning departments with the necessary information to support the internal accounting and decision making process. It measures the managements capacity to generate profits on sales and total investment in the business. In the case of Nokia..(profitability analysis of nokia) 1.1GROSS MARGIN: The gross margin of a company is theÂÂ  percent ofÂÂ  total sales revenueÂÂ  that the company retains after incurring the direct costs associated with producing the goods and services sold by the company. The higher the percentage, the more the company retains on each Euro of sales. This shows the percentage of control that the management has over cost.[2] Gross Margin (%) = Gross Profit / Operational Profit X 100 Turnover (2009 = 13264/40984*100 = 32.36%) The gross margin (%) of Nokia is YEAR 2009 2008 2007 2006 2005 Gross Profit 13264 17373 17277 13379 11982 Turnover 40984 50710 51058 41121 34191 Gross margin (%) 32.36 34.26 33.84 32.54 35.04 (All the figures mentioned above are in EUR millions) As we can see from the table above, the gross margin % had a raising trend in the 2006 -08 , where it increased from 32.54% to 34.26%. But however, in the year 2009 the profits have come down from 50710Eur m 40984Eur m resulting in a decrease of 1.90% in the gross margin. 1.2 NET MARGIN: The net margin ratio of a company is the ratio that allows an external person to make an overall assessment of the profitability of the company over a given period of time by comparing the level of net trading profit to the sales volume.[3]The percentage of net margin shows how much of each Euro earned by the company is translated into profits.ÂÂ   Net margin (%) = Profit Before Tax X 100 Turnover (2009 =962/40984*100 = 2.347) Year Profit Before Tax Turnover Net Margin (%) 2009 962 40984 2.35 2008 4970 50710 9.8 2007 8268 51058 16.19 2006 5723 41121 13.91 2005 4971 34191 14.53 (All the figures in the table above are in Euro m) As the figures show, there has been a significant fall in the net profit % from the year 2008 -2009; the net profit % in the year 2008 was 9.8% which then decreased to 2.34% in the year 2009. However, the years 2005 2007 have been good with the profit % being 14.53, 13.19 and 16.19 respectively. This shows that the operating expenses of nokia have increased and the cost of must be controlled. The cost have increased drastically resulting in a decrease in the net profits. 1.3 RETURN ON EQUITY: Return on Equity is the amount of net incomeÂÂ  returnedÂÂ  as a percentageÂÂ  of shareholders equity. It measures the companys profitabilityÂÂ  by revealing how muchÂÂ  profit a company generatesÂÂ  with the money shareholders have invested.ÂÂ  [4] Return on Equity = Profit after Tax X 100 Shareholders Funds (it is given in d annual report) Year Return on Equity (%) 2009 6.5 2008 27.5 2007 53.9 2006 35.5 2005 27.1 (All the figures in the table have been taken from the nokias official wesite)[5] The return on equity % showed steady growth in the years 2005 and 2006 and then reached the peak value in 2007 with a ROE % of 53.9 but the ROE has decreased to a great extend in the years 2008 and 2009. As a result of the decrease in the profits after tax, the profits of the tax in year 2008 were 3889 Eur m which decreased to 260 Eur m in 2009. 1.4 RETURN ON CAPITAL EMPLOYED: Return On Capital Employed is the ratio that indicates the efficiency and profitability of a companys capital investments. The Return On Capital Employed should always be higher than the rateÂÂ  at whichÂÂ  the company borrows, otherwise any increase in borrowing will reduce shareholders earnings. Return on Capital Employed = Earnings Before Interest and Tax X 100 Net Assets (it is given in d annual report) Year Return on capital employed (%) 2009 6.7 2008 27.2 2007 54.8 2006 46.1 2005 36.5 ACTIVITY ANALYSIS: Activity analysis measures the companys efficient utilization of resources. The greater the efficiency in the use of its assets to generate sales, the higher is the potential profitability. Hence, the analysis compares the level of sales with the investments in selected assets. The activity analyses that are considered here to study about Nokia are: Turnover of Assets Turnover of Fixed Assets Stock Turnover Days of Stock Held 2.1 TURNOVER OF ASSETS: Turnover of assets is the efficient use of assets for the profitable operation of the business. It is a consistent reliable indicator of managerial skills in generating sales volume on a base of the total assets employed by the company. Turnover assets = Turnover Assets (2009 = 40984/35738 = 1.14) Year Turnover Assets Turnover of Assets 2009 40984 35738 1.14 2008 50710 39582 1.28 2007 51058 37599 1.35 2006 41121 22617 1.81 2005 34191 22452 1.52 (All the figures in the table above are in Euro m) 2.2 TURNOVER OF FIXED ASSETS: The turnover of fixed assets is the measure of a companys ability to generate net sales from fixed-asset investments -ÂÂ  specifically with regard to property, plant and equipment etc. The higher the fixed-asset turnover ratio the more effective the company has been using the investment in fixed assets to generate revenues. Turnover of Fixed Assets = Turnover Fixed Assets (2009 = 40984/12125 = 3.38) Year Turnover Fixed Assets Turnover of Fixed Assets 2009 40984 12125 3.38 2008 50710 15112 3.35 2007 51058 8305 6.14 2006 41121 4031 10.20 2005 34191 3347 1021.54 (All the figures in the table above are in Euro m) 2.3 STOCK TURNOVER: The Stock Turnover is the total value of stock sold in a year divided by the average value of goods held in stock. This makes sure that the cash is not tied up in stock for too long, so as to lose its value over time. It measures sales turnover as a ratio of stocks, and is intended to show how fast stock is moved. The higher the score, the more liquid is the position and lower the investment in stock the better it is. Stock Turnover = Cost of Sales Average Stock (2009 = 27720/2199 = 12.60) Year Cost of Sales Average Stock Stock Turnover 2009 27720 2199 12.60 2008 33337 2704.5 12.32 2007 33781 2215 15.25 2006 27742 1611 17.22 2005 22209 1486.5 14.94 (All the figures in the table above are in Euro m) 2.4 DAYS OF STOCK HELD: The number of days the stock is held is the ratio that measures the average number of days stock held by an organization. Days of Stock held = Average Stock X 365 Cost of sales (2009 = 2199///227720*365 = 28.95) Year Average Stock Cost of sales Days of Stock Held 2009 2199 27720 28.95 2008 2704.5 33337 29.61 2007 2215 33781 23.93 2006 1611 27742 21.195 2005 1486.5 22209 24.43 (All the figures in the table above are in Euro m) SOLVENCY ANALYSIS: Solvency ratios is the ratio that measures the relationship between debts and owners equity and examine the proportion of debt the company is using i.e.; toÂÂ  measure a companys ability to meet long-term obligations. It measuresÂÂ  the size ofÂÂ  a companys after-tax income, excluding non-cash depreciation expenses, as compared to the firms total debt obligations. It provides a measurement of how likely a company will be able to continue meeting its debt obligations. Acceptable solvency ratios will vary from industry to industry, but as a general rule of thumb, a solvency ratio of greater than 20% is considered financially healthy. Generally speaking, the lower a companys solvency ratio, the greater the probabilityÂÂ  that the company will default on its debt obligations. The different solvency ratios are: Current Ratio Quick Assets Debtors Collection Period Creditors Payment Period Speed of cash flow 3.1 CURRENT RATIO: Current ratio is the most popular measure of short term solvency. It indicates the extend to which the claims of short-term creditors are covered by comparative liquid assets.[6]Current ratio is calculated simply dividing the current assets to the current liabilities. Current Ratio = Current Assets Current Liabilities (2009 = 23613/15188 = 1.55) Year Current Assets Current Liability Current Ratio 2009 23613 15188 1.55 2008 24470 20355 1.2 2007 29294 18976 1.54 2006 18586 10161 1.82 2005 18951 9670 1.96 Nokia Corp.s current ratio deteriorated from 2007 to 2008 but then improved from 2008 to 2009 but however the ratios still remain below the 2007 levels. 3.2 QUICK ASSETS: Quick assets is the cash and other assets that can or will be converted into cash fairly soon. This includes accounts receivable, marketable securities etc. A measure of the companys quick assets helps in determining the companys liquidity and its ability to meet its obligations. The ratio used for this purpose is called as the quick ratio or acid test ratio. It compliments the current ratio. Its purpose is to compares the near cash assets with maturing creditors claims. Quick Assets = Current Assets Stock Current Liability (2009 = 23613-1865/15188 = 1.43) Year Current Assets Stock Current Liability Quick assets 2009 23613 1865 15188 1.43 2008 24470 2533 20355 1.07 2007 29294 2876 18976 1.39 2006 18586 1554 10161 1.67 2005 18951 1668 9670 1.78 The Nokia Corp.s quick ratio deteriorated from 2007 to 2008 but then improved from 2008 to 2009. 3.3 DEBTORS COLLECTION PERIOD(not edited ) The period, on average, that a business takes to collect the money owed to it by its trade debtors. If a company gives one months credit then, on average, it should collect its debts within 45 days. The debtor. he term Debtor Collection Period indicates the average time taken to collect trade debts. In other words, a reducing period of time is an indicator of increasing efficiency. it enables the enterprise to compare the real collection period with the granted/theoretical credit period. Debtor Collection Period = (Average Debtors / Credit Sales) x 365 ( = No. of days) (average debtors = debtors at the beginning of the year + debtors at the end of the year, divided by 2) Debtors Collection Period = Debtors X 365 Sales (2009 = 7981/40984*365 = 71.08) Year Debtor Sales Debtors Collection Period 2009 7981 40984 71.08 2008 9444 50710 67.97 2007 11200 51058 80.06 2006 5888 41121 52.26 2005 5346 34191 57.07 (All the figures in the table above are in Euro m) 3.4 CREDITORS PAYMENT PERIOD: Creditors Payment Period is the ratio that relates the amount owed to trade creditors by a company at the end of a specified period in relation to the cost of purchases bought on credit during that period i.e.; it is the total number of days that a company will take to settle the amounts it owes to its creditors. Creditors Payment Period = Creditors Purchase Year Creditors Purchase Creditors Payment Period 2009 4950 2008 5225 2007 7074 2006 3732 2005 3494 3.5 SPEED OF CASH FLOW: Speed of Cash Flow = Turnover Debtors 365 (2009 = 40984-7981/365 = 90.42) Year Turnover Debtors Speed of Cash Flow 2009 40984 7981 90.42 2008 50710 9444 113.05 2007 51058 11200 109.2 2006 41121 5888 96.52 2005 34191 5346 79.02 FINANCIAL STRUCTURE: (not edited) Financial Structure is the framework of the various types of financings employed by a firm to acquire and support resources necessary for its operations. Commonly, it comprises of stockholders (shareholders), investments (equity capital), long-term loans (loan capital), short-term loans (such as overdraft), and short-term liabilities (such as trade credit) as reflected on the right-hand side of the firms balance sheet. Capital structure, in comparison, does not include short-term liabilities.[7] 4.1 CAPITAL GEARING RATIO: Capital Gearing Ratio is the analyzes of the capital structure of a company. It is the measure of the percentage that the owner funds as opposed to the percentage the outsiders funds. If more capital is invested by the owners than the amount borrowed, the risk decreases. This is known as low gearing. If outside interest exceeds the owners interest, the risk increases. This is known as high gearing. Capital Gearing Ratio = Debt Debt +Equity (2009 = 20989/35738 = 0.59) Year Debt Equity Capital Gearing 2009 20989 35738 0.59 2008 23072 39582 0.58 2007 20261 37599 0.54 2006 10557 22617 0.47 2005 9938 22452 0.44 (All the figures in the table above are in Euro m) 4.2 INTEREST COVER: (not edited) Interest cover is a measure of the adequacy of a companys profits relative to interest payments on its debt. The lower the interest cover, the greater the risk that profit (before interest) will become insufficient to cover interest payments. It is: EBIT net interest paid A value of more than 2 is normally considered reasonably safe, but companies with very volatile earnings may require an even higher level, whereas companies that have very stable earnings, such as utilities, may well be very safe at a lower level. Similarly, cyclical companies at the bottom of their cycle may well have a low interest cover but investors who are confident of recovery may not be overly concerned by the apparent risk. Interest Cover = Gross Profit (Operational profit) Interest Payable (2009 = 13264/1661 = 7.99) Year Gross Profit Interest Payable Interest Cover 2009 13264 1661 7.99 2008 17373 2302 7.54 2007 17277 2565 6.73 2006 13379 92 145.42 2005 11982 205 58.45 (All the figures in the table above are in Euro m) 5 STOCK MARKET MEASURES: 5.1 PRICE PER EARNINGS: It is the valuation ratio of a companys current share price compared to its per-share earnings. Price Per Earnings Ratio = Market Price of Shares Earnings per Share (2009 = 8.88/0.24 = 37) Year Market Price of Share Earnings Per Share Price Per Earnings 2009 8.88 0.24 37 2008 20.04 1.07 18.73 2007 16.98 1.85 9.18 2006 17.08 1.06 16.11 2005 11.96 0.83 14.41 (All the share prices mentioned above has been calculated taking the date as 31st Mar for every five years) 5.2 EARNINGS PER SHARE: It is the portion of a companys profit allocated to each outstanding share of common stock.ÂÂ  Earnings per shareÂÂ  serve as an indicator ofÂÂ  a companys profitability. Earnings Per Share: Profit after Tax No: of Shares (it is given in d annual report) Year Earnings Per Share 2009 0.24 2008 1.07 2007 1.85 2006 1.06 2005 0.83 5.3 DIVIDEND YIELD Dividend yield = Dividend per share Market value per share (2009 = 0.40/8.88 = 0.045) Year Dividend Per Share Market Value Per Share Dividend Yield 200.9 0.40 8.88 0.045 2008 0.40 20.04 0.0199 2007 0.53 16.98 0.031 2006 0.43 17.08 0.025 2005 0.37 11.96 0.031

Essay Writing Samples For Kids

Essay Writing Samples For KidsEssay writing samples for kids are essential for your students to get a better understanding of how essays should be done. While you do not want them to copy your essay's word for word, it is important that they understand the concepts behind them. This will help them see what is appropriate and what is not.Students do not always have the skills to write their own essays. They can benefit greatly from the experience of someone who has already gone through the process. These essays are essentially a part of a curriculum known as 'syllabi'. Essays based on syllabi are required by most high schools and colleges.Essays for kids are very similar to those for adults. However, because the topics they cover are typically educational, they can be slightly more detailed. There are some areas that will not be covered in school, such as religion and politics.You need to remember that children are not capable of writing essays on their own. They should therefore take the advice of an experienced writer and learn how to craft their own essay. They can usually find a teacher who can help them in this process.One of the best essay writing samples for kids are essays based on the spring holidays. These are usually poems and personal stories that will appeal to children on a more child-like level. Many teachers will allow you to use this topic for your children's exams.These essays can be particularly useful if you want to teach your children about an aspect of the world that they can appreciate. For example, take a look at literature. Some teachers prefer to focus on short stories or novels, which is fine if your child is not into the more serious type of fiction.However, if you are a teacher who is interested in teaching your children's writing, then using these essays for kids is essential. Children will still appreciate the ideas but they will also be able to understand that they are not always going to be able to write this type of essay on the ir own. It is often easier to get them to read a story than to write a lengthy essay on a very different topic.You will be able to find essay writing samples for kids in many forms online. Some are more interactive than others, which will suit your particular style of teaching. Try looking at the subject that interests you most and then search for essay writing samples for kids based on that subject. You should be able to find a few links to essays that you can use with your students.