David Schwendinger
Strayer University
Financial Accounting for Managers
Acc 556
Dr. James Turkvant
May 11, 2015 Assignment 1: Financial Analysis of John Deere
In this paper I will provide analysis of the annual report provided by the company. I will specifically looking at this report from an investor’s prospective, attempting to ascertain whether John Deere is managing its finances in manner that will draw investors. Other, non-financial, aspects of John Deere will also be considered that could be used as decision points for potential backers. This will also be considered in the larger context of the construction and farm machinery industry and some of John Deere’s competitors. …show more content…
There are many other aspects of a company that should be considered when reviewing it for an investment decision. Three that will be discussed here are: environmental responsibility, social responsibility and governance/ethics.
To protect the environment John Deere seeks to reduce its water consumption and recycle the waste produced by its manufacturing facilities. At one factory they were able to reduce water consumption by 50% and recycles almost 75% of produced waste. John Deere has been working toward producing more fuel-efficient vehicles and increasing the accuracy of its nutrient application products. It has also reduced the emissions with clean-burning engine technology.
The company is also very involved in the community. “Total company and company-foundation support of citizenship activities, whose main focus includes solutions for world hunger, improved educational opportunities, and community development” (Deere & Company, 2014, p. 9) John Deere’s efforts helped the company received an award of excellence from Committee Encouraging Corporate Philanthropy (CECP).
John Deere is continually identified as one of the world’s most ethical and most admired companies. These types of awards are not just external parties looking in but also determined by