Deliverable 2 – Team 6

1. Accounting/Finance: Based on our unit on Accounting and finance, you must include
information and analysis of the following topics:

a. Using different financial reports, what is the size of your company compared to 2
competitors (the same 2 used on part 1)?

Financial reports GE: (millions)

Operating Segments:
2014 2013 2012 2011 2010

Statement of Earnings:
2014 2013 2012

Financial Flows:
2014 2013

Cash flows:
2014 2013 2012

Market cap: $235.5 billion

Sales: $148.45 billion
Assets: $648.35 billion
Profits: $15.22 billion

Siemens
For the fiscal years ended September 30, 2014 (in millions of $, per share amounts in $)

Revenue and Expenses

Revenue - 79,112
Cost of sales - 56,281
Gross profit - 22,830
Research and development expenses - 4,471
Selling and general administrative expenses - 11,466
Other operating income - 721
Other operating expenses - 213

Equity and Liabilities

Total Liabilities - 80,701
Total Equity - 34,665
Total Liabilities and Equity (Total Assets) - 115,366

Total Comprehensive Income to Shareholders of Siemens AG - 6,819

Total Equity Attributable to Shareholders of Siemens AG - 30,954

Market Cap - $97 Billion

Compared to Schneider, Siemens AG is much larger in terms of its revenue and assets. Siemens
($97B) almost doubles Schneider ($47B) in market cap. Siemens total assets are $115B
compared to Schneider at $45B.

b. For the last fiscal year for which you can find reports: 2014-2015

i. What are your company’s biggest assets? Long-term or short term

Why?
Schneider’s biggest assets are Goodwill which is a long term/non-
current asset and Net receivables which is a short-term/current asset.
Goodwill is important as it not only helps in customer acquisition and
improving brand image but it also plays a huge role in customer
retention. Net Receivables is basically the amount that the company
hopes to get back from its creditors and this also highlights the fact that
the company is dealing is capital intensive goods because the amount
of money involved is huge.

ii. What is their revenue?

30,313 Million Dollars
iii. What is the profit?
2,505 Million Dollars
c. Make a chart with these data points for the past 5 years. MILLION

Financial Year Biggest Assets Short/Long Revenue (in Profit(In

Term Millions) Millions)

2014-2015 Goodwill - 20.33 $ Long term 30,313 $ 2,505 $

Net Receivables- 7.33 $ Short term

2013-2104 Goodwill-17.77 $ Long term 32,423 $ 2,705 $

Net receivables - 7.09 $ Short term

2012-2013 Goodwill-17 $ Long term 31,562 $ 2,539 $

Short term
Net Receivables - 6.99$

2011-2012 Goodwill - 16.52 $ Long term 28,956 $ 2,462 $

Net Receivables - 7.03 $ Short term

2010-2011 Goodwill - 13.66 $ Long term 26,205 $ 2,403 $

Net Receivables- 5.72 $ Short term

d. Make a chart showing where your company stands compared to the 2 chosen competitors.

Amounts in millions of dollars

2014-2015 Financials Revenue Total Assets Market Cap

Schneider Electric 30,313 44,231 35,915

Siemens AG 79,112 115,366 97,200

General Electric 148,589 653,514 298,270

e. Who are the stakeholders impacted by this information?

The stakeholders who utilize this information and are impacted by it are investors, consumers,
the company, banks (who give loans), shareholders, competitors, employees, as well as suppliers.

f. What does all of this information mean? What do the numbers say about their
strategy and/or decision-making?

Based on market capital, Schneider electric is significantly smaller than its competitors coming
in at $47.5 Billion compared to GE at $235.5 Billion and Siemens at $97.7 billion.

Although small, Schneider has grown steadily in its assets and revenues. Schneider’s size may be
a result of where it’s located, headquartered in Europe, combined with its focus on being as
global as possible. They have a grand focus on energy efficiency in production and conservation.

g. What can you conclude about your company, its decision-making and/or strategy, in
comparison with its competitors?

Schneider Electric’s Revenues have been growing since 2010. However, it is still smaller
than its competitors in terms of financial reports. It’s assets have also steadily growing.On an
organic basis, our revenues grew 1.4%. Growth was more robust at 3.2% in three of our four
businesses, excluding the Infrastructure business which remained impacted by the weak utility
market in Europe. Adjusted EBITA was €3.5bn and net income reached a record high €1.9bn.
The proposed dividend is €1.92 per share, up 3%.
How they translate back to the companies strategies
make inferences to their decisions and connect it to finances
check balance sheets to see exclusivity
check the cost structure on the income statement
translate that to an analysis and relate it to the companies actions