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Essay / Research Paper Abstract
This 10 page paper presents a financial analysis of the Dow Chemical Company from a range of stakeholder perspectives. After a brief introduction to the company ratios of interest to a shareholder are presented including the net profit, earnings per share and the price earnings ratio. Ratios of interest to the creditor then discussed including interest-rate coverage and the current ratio was the last section looking at ratios of value to management including gross profit, stock turnover and debtor days. The bibliography cites seven sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEdowchem.rtf
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Unformatted sample text from the term paper:
on a commercial basis started in 1898 (Dow Chemical, 2007). Since that time the company has grown and expanded with mergers and acquisitions as well is the creation of new
divisions. Today Dow has grown to be a diversified chemical company with products that include plastic, chemical and agricultural products and services (Dow Chemical, 2007). The company has manufacturing facilities
in 37 countries, employs 42,600 people and sells a range of 3100 products across 175 countries (Dow Chemical, 2007). The company appears to be performing well at the current
time, revenue growth in 2006 was up 6.1% on 2005, and in turn 2005 was up 15.3% on 2004. However, not all performances equally as impressive operating income was down
by 21.2% in 2006 compared to 2005 and the earnings per share in 2006 were down 17.7% on 2005 (Dow Chemical, 2007, 2006). In order to assess the performance of
the company a range ratios can be utilised. The ratio is chosen will reflect the interests of the analyst. Some ratios may be of interest to all users, while others
may be of greater interest to specific users. To consider the company from a range of perspectives and exceptions will consider ratios from the perspective of the investor, potential creditor
and finally management. 2. Investor Ratios The investor will be interested in the performance of the company in order to assess the potential return they will make if they purchase the
shares. A number of ratios may be used; the most basic ratio is that of the net profit before tax. For a company to survive and be able to make
a profit for the shareholders it needs to be profitable. Companies may be able to sustain some years of losses, and in some industries this is more than acceptable where
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