Sign In
Not register? Register Now!
Pages:
8 pages/≈2200 words
Sources:
5 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Research Paper
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 50.54
Topic:

Financial Analysis for IBM

Research Paper Instructions:
In this assignment, assume you are a savvy financial analyst researching companies in which to invest. Select a U.S. publically-traded company you think might be a good investment and perform a financial analysis. Your analysis should include the following: - Company Overview. Conduct research and describe the company, its operations, locations, markets, and lines of business. Collect financial statements for the past three (3) years, fiscal or calendar (please insert these in the appendix). These financial statements must include at least the income statement and the balance sheet. - Evaluate the company's vulnerability to current financial threats such as a recession, higher interest rates, and global competition. - Financial Performance. Based on the financial trends of the company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction. - Stock Price Analysis. Given the performance of the stock in the periods presented on the company's financial statements, discuss how the stock is likely to perform in the future, what type of investor would be drawn to this stock, and make a recommendation to management to improve stock performance. Submit your analysis in the form of a 6-8 page paper in which you: 1. Provide a detailed overview of a U.S. publicly traded company. This should be one to two (1-2) pages. 2. Evaluate the company's vulnerability to current financial threats such as a recession, higher interest rates, and global competition. 3. Based on the financial trends of the company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction. 4. Cite at least five (5) quality references. Your assignment must follow these formatting requirements: - Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. - Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: - Critique financial management strategies that support business operations in various market environments. - Estimate the risk and return on financial investments. - Apply financial management options to corporate finance. - Use technology and information resources to research issues in financial management. - Write clearly and concisely about financial management using proper writing mechanics
Research Paper Sample Content Preview:

Financial Analysis for IBM
Name
Institution
Financial Analysis for IBM
International Business and Machines (IBM) company history dates back to 1890 when many immigrants relocated to the United Sates. In the beginning, IBM was only operating in New York City. After operating for some years, it expanded its offices and to various parts of New York State, Michigan, Toronto, Washington DC, and Canada. Founded on June 16 1911, in Endicott, New York, IBM has remained a leading company in innovation. The company only dedicates approximately 20% of its services to the manufacture of its hardware while 80% of its services are mainly consulting in the computer and technology industry (Aswad & Meredith, 2007). In the period that the company has been in operation, some of its practices have been controversial while others have helped it in meeting customer and shareholders’ demands.
The number of patents held by IBM is an evidence of the company’s commitment to innovation. For instance, from 1993 to 2007, the company was awarded more than 38,000 U.S patents, and managed to invest around $5 billion a year in research, engineering, and development since 1996. Currently, IBM’s current active portfolio has more than 26,000 patents in the US and more than 40,000 patents globally as a result of its investments (Aswad & Meredith, 2007). Furthermore, IBM has been quite effective in promoting organizational management by launching effective campaigns to create new assets, optimizing the existing assets, and analyzing data.
In1914 Thomas Watson joined the company and became the company’s president within one year. It was through his leadership that the company embarked on expanding its products and services (IBM Website, 2013). During that period, the company mainly focused on the production of large-scale custom built tabulating solutions for businesses.
Evaluate the company’s vulnerability to current financial threats such as a recession, higher interest rates, and global competition
Current Financial Threats for IBM from Recession
Recession is a period of a negative economic growth, which may be caused by many factors. For a recession to be a financial growth for IBM, it must have occurred in the region or countries where the company has its operations. For this reason, it is not possible to determine which countries have a threat of recession or which ones do not. Fundamentally, recession is characterized by a low GDP and high unemployment rates (IBM Website, 2013). IBM may be affected by a recession that occurs mainly in the US or in Europe. This does not mean that a recession in other parts of the world where the company has operations will not affect, but the magnitude may be higher if it affected some of the leading economies in the world. Organizations with high bank loans are largely affected because they are likely to have a challenge in repaying their loans due to slow economic growth.
IBM reported a tot...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

👀 Other Visitors are Viewing These APA Research Paper Samples:

HIRE A WRITER FROM $11.95 / PAGE
ORDER WITH 15% DISCOUNT!