Westinghouse

Founded in 1872, Westingho practice session Electric Corporations primary demarcation activity was the manufacture and sale of equipment and appliances related to electricity. Westinghouse, as numerous a(prenominal) other corporations, has expanded into a couple different markets. 1973 appears to be a bleak year for the smart set compared to its prior problem year, mostly due to losses in a few of its subsidiaries. Westinghouses chairman, D.C. Burnham, has made several public statements slightly his telephoners execution of instrument over the chivalric devil old age, announcing two increased growth and come downd mold ins. In order to particularize the future fiscal performance of Westinghouse, and whether the past two years have been overall validatory or negative for the company, it is necessity to fully examine its pecuniary statements to determine trends over the past two years and mayhap predict future financial performance. Westinghouse experie nced an overall fall in return on equity in 1973 compared to 1972. gaolbreak up the ROE by the DuPont analysis shows that Westinghouse saw a decrease in in operation(p) efficiency and asset use efficiency, combined with an increase in financial leverage in 1973.

With fluctuations in all trinity aspects of the DuPont analysis and a remarkable overall decrease in ROE, Westinghouse does not appear to be as salaryable in this most recent year. The decrease in operating efficiency, shown by the decrease in advance allowance account, shows that Westinghouse is not able to have costs as effectively as in the previous year. In sump tuous of 1973, Burnham stated that he was no! t cheery with Westinghouses profit margin, which had been averaging around 4%, and thought the company could have a profit margin closer to 5%. Instead of increase its profit margin, Westinghouse actually decreased its profit margin to 2.8% at the end of 1973 a vast contrast from Burnhams name and address just a few months earlier. such a queen-size decrease in profit margin could show accomplishable earnings management in prior years...If you want to lay out a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay