Essay about Individual Comparative Analysis Memo

1673 Words Mar 4th, 2011 7 Pages
Individual Comparative Analysis Memo
Accounting – Annual Report Project
Fall 2009

Annual Report Project | SJM | Medtronic | | 2008 | 2008 | Profitability Ratios | | | Return on Equity | 12.5% | 17.8% | Return on Assets | 13.13% | 7.9% | Earnings per Share | $1.12 | $1.94 | Return on Sales | 8.81% | 14.86% | Gross Margin Percentage | 73.17% | 80.60% | Solvency Ratios | | | Current Ratio | 2.02 | 2.37 | Working Capital | 1,051,539* | 4,313** | Quick Ratio | 1.20 | 1.52 | Interest Coverage Ratio | 28.93 | 90.44 | Activity/Asset Turnover Ratios | | | Receivable Turnover | N/A | N/A | Receivable Collection Period | N/A | N/A | Inventory Turnover | 2.33 | 2.67 | Average Days Supply*** | 154 days
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Once again, comparing this to net cash provided by operating activities, the amounts were $648,811, $865,569, and $945,592 (in thousands) for the years 2006, 2007, and 2008 respectively. Compared to net income, this shows an increase, which tells us that net income and cash flow from operations are not moving in the same direction and the rate of change were different.
The main investing activity for each Medtronic during the current year was the purchasing of marketable securities, which totaled $2,960,000,000. However, for fiscal year 2008, the main investing activity was the sale and maturity of marketable securities, with a total of $8,557,000,000. In fiscal year 2007, the main activity was once again purchases of marketable securities, this time with a bigger total than 2009; $11,837,000,000. For SJM, the main investing activity for 2008 was the business acquisition payments, with a total of $490,027,000. For 2007, the main activity was the purchasing of property, plant and equipment, totaling $287,157,000. For year 2006, it was the same activity, however, with a total of $267,896,000.
The main financing activity for Medtronic for fiscal year 2009 was the issuance of long-term debt, with the amount of $1,250,000,000. For 2008, it was repurchasing of common stock with a total of $1,544,000,000. And for 2007, it was payments on long-term debt, totaling $1,880,000,000. SJM’s main financing activity for 2008 was the repayment of

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