General Electric Compared to Tyco International

frequent electric and Tyco International are classified as conglomerates severally approaching their business with a different schema that let different financial results. The results below for both GE and Tyco allow gross shareowners fair-mindedness, market capitalization, web clamss margins for the depart 5 long time, average net increase margin, market to book residual along with net income and hand on righteousness. $s in cardinal(s) GE& - TYCO Common shareholders Equity $109 $32 mart chapiter $377 $58 Net profit Margins (Dec) 2005         12.2%         8.1% 2004         12.1%         7.7% 2003         12.2%         2.6% 2002         11.5%         -8.2% 2001         11.2%         11.5% Average net profit margin         11.8%         4.3% Market to book ratio         346%          181%                   Net Income          $16          $3 Return on equity         15%         9% In looking at both GEs and Tycos market-to-book ratios along with the derive on equity shows that worldwide Electric has make a much better job of providing greater shareholder wealth. The Market capitalization for General Electric is about 377 billion dollars with gross shareholders equity of 109 billion dollars. When you divide Market Capitalization into common shareholders equity we arrive at 346% versus Tyco at 181%.

The n et income for General Electric is 16 billion! versus Tyco at 3 billion. When the net income is divided by the common shareholders equity it shows that General Electric is able to provide a 15% return on equity compared to Tyco at 9% thus qualification GE more attractive. As an investor GE would be the familiarity of choice when prepare up against Tyco since their percentage on return on equity is greater. The average net profit everyplace 5 years for General Electric is 11.8% compared to 4.3% for Tyco. When compared over the last 5 years General Electric has performed consistently and for the about part since 2001 has change magnitude Net profit margins slightly, If you want to narrow a replete(p) essay, order it on our website: BestEssayCheap.com

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