SeaWorld Entertainment Inc is a publicly traded company that operates as a family oriented theme park. While establishing 11 marine-life theme parks, SeaWorld has created a well known brand name throughout the United States. As we take a look and examine this company, we will analyze the stock market and calculate certain ratios to see how well or poorly SeaWorld has been doing the past years while also comparing the company with other related industries.
Ideally, we would compare SeaWorld to other zoological establishments or aquariums but they are mostly nonprofit or not publicly traded so we can not compare. However, Yahoo Finance says they are comparable to Six Flags, so we used Six Flags.
A lot of the time, a company’s stock price can be driven by the company’s ability to generate earnings. The three ratios used to effectively compare and analyze the company will be profit margin, return on assets, and current ratio. Analyzing a company’s profit margin can be very helpful when determining an efficient and profitable company. SeaWorld Entertainment Inc has a profit margin of 3.58%, and Six Flags has a profit margin of 12.24%. Since profit margin measures the amount of net income earned with each dollar of sales, it can be determined that Six Flags is generating a relatively higher profit margin than SeaWorld. Which …show more content…
This low amount of risk is a good and bad thing. Low risk results in low reward or return, however you are less likely to lose your initial investment in the stock. As the market shifts, so does SeaWorld’s stock but it will not shift as much as the market. For example, if the market increases by 10% SeaWorld will only increase by 2.25%. This also applies if the market decreases, SeaWorld stock will also decrease but not as much as the market. Proving, the stock is less risky than the
Ideally, we would compare SeaWorld to other zoological establishments or aquariums but they are mostly nonprofit or not publicly traded so we can not compare. However, Yahoo Finance says they are comparable to Six Flags, so we used Six Flags.
A lot of the time, a company’s stock price can be driven by the company’s ability to generate earnings. The three ratios used to effectively compare and analyze the company will be profit margin, return on assets, and current ratio. Analyzing a company’s profit margin can be very helpful when determining an efficient and profitable company. SeaWorld Entertainment Inc has a profit margin of 3.58%, and Six Flags has a profit margin of 12.24%. Since profit margin measures the amount of net income earned with each dollar of sales, it can be determined that Six Flags is generating a relatively higher profit margin than SeaWorld. Which …show more content…
This low amount of risk is a good and bad thing. Low risk results in low reward or return, however you are less likely to lose your initial investment in the stock. As the market shifts, so does SeaWorld’s stock but it will not shift as much as the market. For example, if the market increases by 10% SeaWorld will only increase by 2.25%. This also applies if the market decreases, SeaWorld stock will also decrease but not as much as the market. Proving, the stock is less risky than the