Financial Position of Goodyear
Financial Report - Goodyear
Financial Report - Goodyear
2012
30.10.2012
2012
30.10.2012
Chris Schone
Pieter Steins Bisschop
Alexander Schieving
Joy Ma
Marijana Stanimirovic
Danielle van der Zwan [Skriv inn innhold for sidestolpen. En sidestolpe er et frittstående tillegg til hoveddokumentet. Det er ofte justert mot venstre eller høyre side av siden, eller plassert øverst eller nederst.]
Chris Schone
Pieter Steins Bisschop
Alexander Schieving
Joy Ma
Marijana Stanimirovic
Danielle van der Zwan [Skriv inn innhold for sidestolpen. En sidestolpe er et frittstående tillegg til hoveddokumentet. Det er ofte justert mot venstre eller høyre side av siden, eller plassert øverst eller nederst.]
Executive summary
As a result of analyzing the financial position of Goodyear it can be concluded that the company holds certain risks to invest in.
Conducted analysis indicates that Goodyear is neither highly profitable nor efficient in terms of the profit gained from its assets. The liquidity is quite low compared to one of their main competitor Michelin.
Considering the performance of the stock price Goodyear experienced three drops. The first drop was in 2006 following a big drop in 2009 and lastly a drop in the summer of 2012.
Although from August 2012 onwards there is a recovery of the stock price and most analysts find that investors should either hold on to or buy the stocks. Goodyear is, as stated later, underperforming compared to the competition and its sector.
Therefore it can be concluded that in despite of the positive outlook, at least the next coming year, Goodyear’s stock price has been underperforming, which is being discussed more thoroughly in chapter 4 of this report.
As a whole it can be clarified that Goodyear is not a reliable company to invest in and will probably not be in near and far future. The reason for this negative advice is based on several factors explained in chapter 5.
Table of Contents Executive summary 2
Financial Report - Goodyear
2012
30.10.2012
2012
30.10.2012
Chris Schone
Pieter Steins Bisschop
Alexander Schieving
Joy Ma
Marijana Stanimirovic
Danielle van der Zwan [Skriv inn innhold for sidestolpen. En sidestolpe er et frittstående tillegg til hoveddokumentet. Det er ofte justert mot venstre eller høyre side av siden, eller plassert øverst eller nederst.]
Chris Schone
Pieter Steins Bisschop
Alexander Schieving
Joy Ma
Marijana Stanimirovic
Danielle van der Zwan [Skriv inn innhold for sidestolpen. En sidestolpe er et frittstående tillegg til hoveddokumentet. Det er ofte justert mot venstre eller høyre side av siden, eller plassert øverst eller nederst.]
Executive summary
As a result of analyzing the financial position of Goodyear it can be concluded that the company holds certain risks to invest in.
Conducted analysis indicates that Goodyear is neither highly profitable nor efficient in terms of the profit gained from its assets. The liquidity is quite low compared to one of their main competitor Michelin.
Considering the performance of the stock price Goodyear experienced three drops. The first drop was in 2006 following a big drop in 2009 and lastly a drop in the summer of 2012.
Although from August 2012 onwards there is a recovery of the stock price and most analysts find that investors should either hold on to or buy the stocks. Goodyear is, as stated later, underperforming compared to the competition and its sector.
Therefore it can be concluded that in despite of the positive outlook, at least the next coming year, Goodyear’s stock price has been underperforming, which is being discussed more thoroughly in chapter 4 of this report.
As a whole it can be clarified that Goodyear is not a reliable company to invest in and will probably not be in near and far future. The reason for this negative advice is based on several factors explained in chapter 5.
Table of Contents Executive summary 2
Bibliography: Books * Atrill, P., McLaney, E., 2010 * Higgins, R. 2009. Analysis for financial management, 9th edition. McGraw-Hill Company websites * Goodyear, 2009, Annual Report 2009 [pdf] Available at http://www.goodyear.com/investor/pdf/ar/2009ar.pdf [Accessed 06/10/12] * Goodyear, 2008, Annual Report 2008 [pdf] Available at http://www.goodyear.com/investor/pdf/ar/2008ar.pdf [Accessed 08/10/12] * Bridgestone, 2007, Annual Report 2007 [pdf] Available at http://www.bridgestone.co.jp/corporate/library/pdf/bs_annual_2007_operational.pdf [Accessed 14/10/12] Internet resources * Thomson Reuters , 2012 * Thomson Reuters , 2012. Charts. [online] Available at http://www.reuters.com/finance/stocks/chart?symbol=GT [Accessed 09/10/2012] * J.Smith, 2012 * M. Rowe 2012 “ Bridgestone releases 100% sustainable tire concept’. Greener Ideas [online] 20/10/2012 Available at: http://www.greenerideal.com/vehicles/1020-bridgestone-releases-sustainable-tire-concept/ [Accessed 16/10/2012] * Marketwatch, 2012 * Investopedia, 2012. Definition of ‘Acid-test Ratio’. [online] Available at http://www.investopedia.com/terms/a/acidtest.asp#axzz2As0QXX5V [Accessed 06/10/2012] Appendix When calculating the ratio’s, the formula’s below were used at a consistent basis (used until 2007), therefore only the years 2010 and 2011 are included in the appendix. (in million except per share data) | Michelin | | Goodyear | |