Home Solutions CORPORATE FINANCE
We write, we don’t plagiarise! Every answer is different no matter how many orders we get for the same assignment. Your answer will be 100% plagiarism-free, custom written, unique and different from every other student.
I agree to receive phone calls from you at night in case of emergency
Please share your assignment brief and supporting material (if any) via email here at: [email protected] after completing this order process.
The primary theme of the paper is CORPORATE FINANCE in which you are required to emphasize its aspects in detail. The cost of the paper starts from $115 and it has been purchased and rated 4.9 points on the scale of 5 points by the students. To gain deeper insights into the paper and achieve fresh information, kindly contact our support.
Financial Performance of Apollo Tyres in Recent Years
Santanu is looking for a company that has high growth. The revenue growth for the company is considerably high as illustrated in Table 1.0 below. The revenue grew by an average 28.86% over the last five years (from 2008 to 2012). This indicates that the company market size is expanding, which is positive news to the investor.
Table 1.0 Apollo revenue growth
The net profit growth has been very volatile caused mainly by the volatility of the costs of goods sold. Given that dividend to shareholders is given from retained earnings (obtained from unappropriated net income), income volatility points out to inconsistent yield. High net income volatility rhymes with high-risk investment strategy. The net income growth for the Apollo Company is illustrated in Table 2.0 below
Apollo has been relaying highly on debt financing with a debt to equity ratio increasing from 0.6 in 2008 to 1.0 in 2012. This increases the company’s debt payment obligations and finance costs (which lowers the amount available to be appropriated to shareholders). However, higher reliance on debt can be positive news for the shareholders because there is low shareholding dilution. The EPS (Basic) for the company reduced from 3.93 in 2011 to 3.6 in 2012. On the other hand, the liquidity of the company increased over the years as indicated in Table 3.0 below where the current ratio increased from 1.5 to 1.71. This means that the ability of the company to meet its obligations increased over the year.
The growth in the company’s profitability and liquidity is a good indicator of the high future performance of the co……………………………