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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
2014
2013
2012
2011 2010
Deliverable 2 – Team 6 1. Accounting/Finance: Based on our unit on Accounting and finance, you

Statement of Earnings:

2014 2013 2012
2014
2013
2012
Deliverable 2 – Team 6 1. Accounting/Finance: Based on our unit on Accounting and finance, you
Deliverable 2 – Team 6 1. Accounting/Finance: Based on our unit on Accounting and finance, you

Financial Flows:

2014 2013
2014
2013
Deliverable 2 – Team 6 1. Accounting/Finance: Based on our unit on Accounting and finance, you
Deliverable 2 – Team 6 1. Accounting/Finance: Based on our unit on Accounting and finance, you

Cash flows:

2014 2013 2012
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 $

Net Receivables - 6.99$

Short term

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
How they translate back to the companies strategies

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