Finance and Portfolio Management Assignment 4 Example | Topics and Well Written Essays - 1000 words

Finance and Portfolio Management 4 - Assignment Example 4. Acquisitions including Sun Microsystems, Siebel, I-Flex, PeopleSoft and others, may involve unanticipated costs, and integration issues that may disrupt existing operations. 5. Risks relating to foreign currency gains and losses and risks relating to compliance with international and US laws that may adversely affect international sales and operations. 6. Risks of reducing prices or losing customers due to intense competition and rapid technological evolution. Source: http://www.wikinvest.com/stock/Oracle_%28ORCL%29/Filing/10-Q/2011/F94876420 Company Performance and Financial Ratios Compared vs. Industry Average/ S&P 500 Growth Rate % Oracle Corp. Industry Average S&P 500 Sales (Qtr vs. year ago qtr) 36.90 23.80 12.10 Net Income (YTD vs. YTD) 13.50 5.60 `5.90 Net Income (Qtr vs. year ago qtr) 78.00 51.50 60.60 Sales (5-Year Annual Avg.) 17.85 14.05 7.98 Net Income (5-Year Annual Avg.) 16.28 11.74 8.03 Dividends (5-Year Annual Avg.) N/A 4.76 5.30 Price Ratios % Current P/E Ratio 21 .3 32.9 19.3 P/E Ratio 5-Year High NA 23.6 18.4 P/E Ratio 5-Year Low NA 8.4 2.6 Price/Sales Ratio 4.73 10.33 2.20 Price/Book Value 4.43 4.69 3.60 Price/Cash Flow Ratio 15.40 20.60 15.30 Financial Condition % Debt/Equity Ratio 0.40 0.30 1.18 Current Ratio 2.9 2.4 1.4 Quick Ratio 2.9 1.8 1.0 Interest Coverage 14.4 21.3 83.8 Leverage Ratio 1.8 1.9 3.8 Book Value/Share 7.24 8.16 25.45 Profit Margins % Gross Margin 75.3 74.9 39.0 Pre-Tax Margin 30.0 3.4 17.4 Net Profit Margin 22.4 22.3 12.8 5 Yr Gross Margins (5-Year Avg.) 78.1 76.1 38.8 5Yr Pre-tax Margin (5-Year Avg.) 33.1 26.2 15.6 5 Yr Net Profit Margins (5-Year Avg.) 23.7 17.9 11.1 Investment Returns % Return On Equity 23.7 27.0 23.4 Return On Assets 12.1 13.6 8.3 Return On Capital 15.3 19.5 10.9 Return On Equity (5-Year Avg.) 24.7 26.1 19.6 Return On Assets (5-Year Avg.) 12.5 14.0 7.7 Return On Capital (5-Year Avg.) 16.4 20.3 10.2 Management Efficiency Income/Employee 73,655 122,961 112,643 Revenue/Employee 328,520 495,504 990,090 Receivable Turnover 8.2 7.3 14.4 Inventory Turnover 28.7 58.6 11.8 Asset Turnover 0.5 0.6 0.8 Source: http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=TenYearSummary&symbol=ORCL Based on the table presented above Oracle Corporation’s Performance and Financial ratios is comparatively better or at par with industry average and with S&P 500. Gowth rate is higher than industry average. The price ratios and interest coverage is lower than industry average. There is a clear disparity in Oracle’s Investment Return Ratios and Management Efficiency Ratios particularly in income and revenue per employee. This low income/employee and revenue/employee ratios show that Oracle employees generally earn less than the industry average. In the long run this is crucial to Oracle’s operation as this relates to employee satisfaction and performance. It is also seen that no data is available on dividends paid as Oracle Corp have not consistently declared or paid d ividends in the past years. The company is geared towards reinvesting funds in acquisitions and tends to delay payment of dividends to stockholders. Reinvesting on its internal customers, the stockholders and the employees, is evidently low. Bonds Maturity Date Interest Price Yield % Oracle 5.75% 04/15/2018 5.75% 155.50 3.21 Oracle 144A 5.375% 07/15/2040 5.375% 101.90 5.25

Habermas the Public Sphere Essay Example | Topics and Well Written Essays - 1000 words

Habermas the Public Sphere - Essay Example 1-13). According to many political theorists, the public sphere is an important entity for a strong democracy. The public and the private spheres acquired a clear distinction in the 17th and 18th century. The public sphere usually consists of informal citizen discussions and deliberations that lead to the formation of a public opinion which is rational enough to guide and influence political systems. Habermas has given a complete outline of the public sphere in The Structural Transformation of the Public Sphere: An Inquiry into a Category of Bourgeois Society. (1989). This piece of work outlines the public sphere critical theory in a systematically developed manner (Dahlgren, 1995, p. 44). The public sphere thus develops from the realms of public authority as well as private relations. The private relations may involve the family and the civil society at large. The private individuals, therefore, come together to form the public sphere. They are driven by the notion of speech without censorship as well as the desire for unified reasoning. According to Habermas, therefore, the public sphere involves both historical economic and political concerns. He continues to explain that every communication contains a communicative action which is oriented towards an agreement. Whenever a matter concerning living together as a people with differences is debated, the public sphere is always constituted. The public sphere became more of a commercial and entertainment entity rather than its conserving its political character. The shift from the original character to other commercialized versions is documented in the press. Habermas, therefore, looks at the integration of literature and journalism as well as the role played by mass media. The public sphere was also affected by the emergence of mass media. The apparent evolution of the communications environment has made the public sphere to change to a platform for advertisements. As a result of these, there emerges a new class of participants such as public relations practitioners (Thompson, 1993, p. 67). Democracy, according to Habermas, is founded on the world of life. It is this world of life that enables free communication between different people. It also drives people into pursuing private and individual interests as opposed to common goals in life. The media plays a crucial role in any democracy. This comes easier, of course, if the environment is right. Such an environment is one which consists of the requisite skills that enable democratic reporting. The media is most of the time flooded with advertisements that target some individual tastes. The information that is presented is also based on the pre-existing views. There should, therefore, be mechanisms which check for public accountability as well as professionalism in media operations. One of the characteristics that identify a democracy is the independence of the media. This is strengthened by the financial viability of the media organizatio ns. Financial strength ensures that the media operates in an environment free of external influences, especially political influences (Hallin, 1994, p.12). The media is also an essential for checking the political system when that system is unable to meet the social expectations. The media is, however, not expected to entertain political bias or partisan reporting at all. Accessibility of the media