It now has a dividend yield of 2.61%, which is better than the industry average of 2.05%. As a result of HRB’s strong financial position, we expect the company to continue to enhancing its shareholders’ value.
Financial Analysis
HRB has two distinct sections of their business that drives the majority of their revenues. These business drivers include their retail division and the digital tax business that allows customers to self-file taxes electronically online. In fiscal year 2015, HRB reported revenue totaling $3.02 billion, and net earnings totaled $485.9 million. In 2014 revenues were estimated to total $2.91 billion and $2.89 billion to conclude their 2013 fiscal year. The data indicates a steady increase in revenue (Appendix B).
In …show more content…
Although they are down by $1 million same quarter 2014. HRB has managed to make an improvement with the long-term-debt. In 2013 HRB long-term-debt topped off at $905.4 million dollars and they’ve diligently decreased their long-term-debt by 0.1% from 2014 to 2015. Using the debt/equity ratio we rationalize that as of the close of fiscal 2015 HRB carries a 0.28% debt-to equity percentage signifying they have the ability to balance debt and pay notes without stressing the balance sheet. The debt-to-equity ratio of 1.44 exhibits their ability to thwart short-term cash flow issues.
The tax giant has consecutively produced positive earning per share (EPS) year over year. HRB garnered a 24.2% increase from 2012-2013. EPS from $1.28 to $1.59, an increase up to $1.67. The 2015 Yearly Report stated an adjusted EPS of 1.75 for the fiscal year. HRB is a steady stock with the potential for growth based on the Earnings per share and E/P ratio. We can also rationalize the before statement by evaluating the Weighted Average Cost Capital (WACC).
H&R Block has a WACC is 14.18%. The WACC proves that HRB is generating higher returns on investment than it costs the company to raise the amount of capital needed for that investment. It is earning excess
Financial Analysis
HRB has two distinct sections of their business that drives the majority of their revenues. These business drivers include their retail division and the digital tax business that allows customers to self-file taxes electronically online. In fiscal year 2015, HRB reported revenue totaling $3.02 billion, and net earnings totaled $485.9 million. In 2014 revenues were estimated to total $2.91 billion and $2.89 billion to conclude their 2013 fiscal year. The data indicates a steady increase in revenue (Appendix B).
In …show more content…
Although they are down by $1 million same quarter 2014. HRB has managed to make an improvement with the long-term-debt. In 2013 HRB long-term-debt topped off at $905.4 million dollars and they’ve diligently decreased their long-term-debt by 0.1% from 2014 to 2015. Using the debt/equity ratio we rationalize that as of the close of fiscal 2015 HRB carries a 0.28% debt-to equity percentage signifying they have the ability to balance debt and pay notes without stressing the balance sheet. The debt-to-equity ratio of 1.44 exhibits their ability to thwart short-term cash flow issues.
The tax giant has consecutively produced positive earning per share (EPS) year over year. HRB garnered a 24.2% increase from 2012-2013. EPS from $1.28 to $1.59, an increase up to $1.67. The 2015 Yearly Report stated an adjusted EPS of 1.75 for the fiscal year. HRB is a steady stock with the potential for growth based on the Earnings per share and E/P ratio. We can also rationalize the before statement by evaluating the Weighted Average Cost Capital (WACC).
H&R Block has a WACC is 14.18%. The WACC proves that HRB is generating higher returns on investment than it costs the company to raise the amount of capital needed for that investment. It is earning excess