Strategic management financial data Essay Example | Topics and Well Written Essays - 750 words

Strategic management financial data - Essay ExampleImportantly it has an gauzy reputation for its committedness to being an equal opportunities employer and to corporate philanthropy. Whilst it does not have anywhere near McDonalds market share, over the last five years its stock has unchangingly outperformed McDonaldsFigure 2 Yum v McDonalds 2002-2007 inception Marketwatch.comAccording to the CEO, David Novak, Yum claims an annual return for investors of 24% between 2000-2005. Little oddity he refers to the company as a demonstrated cash machine with a strong enthronisation grade balance plane. 2Revenue crop Last 5 Years3I have presented both the raw embodiments, interpreted from the 2001-2005 Annual reports respectively and calculated the revenue growth rate using the formula Growth quadruplicate (current year/last year) = 1.344599Growth % rate Growth quadruplicate - 1 x 100 =Annualised Growth last 5 yearsTo work out the annualised growth rate between 2005 and 2000 I uti lise the following formulaTime = 5Growth multiple = 1.344599 = 1.061008Then subtract 1 and multiple by 100 = 6%Operating Expenses as a % RevenueI calculated this figure using the formulaOperating expenses/revenue*100Gross Profit Margin (GPM)I open up this information on the Income statement and used the following calculationTo Calculate Gross Profit unclutter Sales (NS)minus Cost of Sales=Gross Profit (GP)GPM = GP/NSMarket CapitalizationI found 2 definitions for capitalizationDefinition 1 The sum of a corporations long-term debt, stock and carry earnings. Also called invested capital.Definition 2 The market price of an entire company, calculated by multiplying the number of shares gravid by the price per share. here also called market cap or market...Importantly it has an excellent reputation for its commitment to being an equal opportunities employer and to corporate philanthropy.According to the CEO, David Novak, Yum claims an annual return for investors of 24% between 2000-200 5. Little wonder he refers to the company as a demonstrated cash machine with a strong investment grade balance sheet. 2Figures 5-6 In the last 2 years Yum has struggled to outperform the market. This is consistent with the difficulty in sustaining a competitive advantage. Markets trend toward competitive convergence as competitors copy in operation(p) efficiencies. However since October 2005 (Figure 5) Yum has easily outperformed the Dow Jones US Restaurant & Bars index.Figure 9 provides the contrast between Yum and the Dow Jones US Restaurant & Bars index over the last 5 years. With the exception of a blip in 2002-3 when Yum was no better or worse than the Dow Jones US Restaurant & Bars index, Yum has outperformed its sector overall in separately of the last 5 years.