Essay about IBM Corporation W Chart

Submitted By sam0225
Words: 564
Pages: 3

Samuel Torrez
Instructor: Dr. Clark Wheatley
Financial Reporting and Analysis/ACG6175
June 21, 2015

2006
2007
2008
2009
net income
2023
2093
2346
2089 equity 21628
19816
19433
20511
ROE
9%
11%
12%
10%

December figures taken

Factors as well as trends that made a noteworthy contribution to profitability of Big Blue include revenues, cash flow, gross margins and earnings per share (EPS).
Revenue growth: The Company’s most lowest point is in the fiscal quarter of 1997 at $17,308,000 and begins to increase steadily maximizing in the fourth quarter in 1988 at $25,131,000.00. On the other hand, when going from the final quarter in 1988 to the initial quarter in 2000 there is a 23% decline in revenue ending at $19,348.00 which probable is an indication that the peak could have been due to a high point in the year from holiday shopping,.
Cash flow: its main influence has been on helping improve the company’s requirements in short term quarterly from 1999 to 2000.
Gross margins: Lowest - first fiscal quarter of 1988 at $6,450,000.00 Increased - to 34% to $9,809,000.00 in fourth quarter 1998.
The steady minor shifting of gross margins for every quarter indicates constancy as well as a positive viewpoint for the corporation.
Earnings per share (EPS), they started at a comparatively low down point in the commencement of the each year, but a significant increase by the end of the year is seen which indicates good sales during holidays.
Question 2: Evaluate IBM’s Revenue growth, Receivables, and Gross margins and over the period (be sure to control for seasonality in your evaluation).

Revenue: Overall, we can see an increase till 2008 and than a slight decline.The Company’s most lowest point is in its first fiscal quarter of 1997 at $17,308,000 and from there begins to climb steadily and maximizes in the fourth quarter in 1988 at $25,131,000.00. However, we see a 23% decrease in revenue at $19,348.00 as we go from the final quarter in 1988 to the initial quarter in 2000, which was more than likely due to a high point from holiday spending.
Receivables: Receivable show a good rise all through the years. The company’s Account Receivables, much like it’s gross margins, are at it’s lowest in the first quarter of every year. In 1997, in the first quarter the company’s Account