The table above shows the net income and operating cash flows for Calgon Carbon Corporation, Energy Recovery, Inc and Federal Signal Corporation for the year ended 2010-2015. As you can see Calgon Carbon had the most positively correlated Net income and Operating Cash Flow’s, while Energy Recovery INC. Was the most negatively corellated, while Federal Signal Corporation fell in between the two companies. Net income and operating cash flows are related because net income = operating cash flow + accruals. Shown above a conclusion can be drawn about accruals based on the difference between net income and operating cash flow. Based on these results you can conclude that Calgon performs exceptional on a consistent basis and is constantly growing,
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As shown the chart concludes that
Federal Signal Corporations stock is growing at a consistent and fast pace while Calgon Carbon took a small decline last year and have shrunk even more this year due to a decrease in earnings, but they are still outperforming Energy Recovery INC over the past 6 years. At these rates of changes Federal Signal and Calgon Carbon will be very close competitors over the next few years. Meanwhile the growth rate for the businesses dictate how rapidly they will grow or shrink and in this respect for the most part Calgon has been growing and expanding in a respectable fashion having a few years where they have shrunk on by less than 25% unlike Energy Recovery INC who has more years where they have shrunk by over 100% the past 6 years than they have grown and are not expanding much at all. All of this is occurring as Calgon Carbons largest competitor, Federal Signal Corporation has been growing at a very rapid …show more content…
WACC demonstrates the riskiness of the firm in a percentage along with how much weight there is between debt, equity, and the tax rate. Calgon is outperforming the other two companies, meaning that Calgon is less risky than the other two companies Based on the values shown throughout this paper it can be concluded that Calgon could lead the path in the sector for these other two companies and that they should outperform the other two companies in upcoming few years based on the data given, even though they might not be the leading company in the sector right
As shown the chart concludes that
Federal Signal Corporations stock is growing at a consistent and fast pace while Calgon Carbon took a small decline last year and have shrunk even more this year due to a decrease in earnings, but they are still outperforming Energy Recovery INC over the past 6 years. At these rates of changes Federal Signal and Calgon Carbon will be very close competitors over the next few years. Meanwhile the growth rate for the businesses dictate how rapidly they will grow or shrink and in this respect for the most part Calgon has been growing and expanding in a respectable fashion having a few years where they have shrunk on by less than 25% unlike Energy Recovery INC who has more years where they have shrunk by over 100% the past 6 years than they have grown and are not expanding much at all. All of this is occurring as Calgon Carbons largest competitor, Federal Signal Corporation has been growing at a very rapid …show more content…
WACC demonstrates the riskiness of the firm in a percentage along with how much weight there is between debt, equity, and the tax rate. Calgon is outperforming the other two companies, meaning that Calgon is less risky than the other two companies Based on the values shown throughout this paper it can be concluded that Calgon could lead the path in the sector for these other two companies and that they should outperform the other two companies in upcoming few years based on the data given, even though they might not be the leading company in the sector right