Monday, May 6, 2019

Analyzing Financial Statements Essay Example | Topics and Well Written Essays - 750 words

Analyzing Financial Statements - Essay ExampleThe graph shows a stronger relationship between Lowes and the S&P 500 index which is also back up by a positive beta equivalent to 1. This beta of the company suggests that the company swings nearly equal with the grocery variations as is supported by the above graph. It implies a volatility and risk that is equivalent to the market, as distinctly seen in the graph. The graph also shows the up market leads to similar increase in company outlay while a down market leads to similar decrease in price. The company provides almost an equivalent return to the market. Observing the quin year trend of the two, I think the beta of the company has just now estimated near to 1. The lines of two are almost on top of one another.The graph shows a very(prenominal) positive relationship between Joy and the S&P 500 index which is also supported by a positive beta greater than 2. This beta of the company suggests that the company swings almost reiterate to the market variations as is supported by the above graph. It implies a high volatility and a higher risk, as clearly seen in the graph, as compared to the market. As seen in the trend graphs, the company returns are almost the double-be it an up market or a down market. Observing the five year trend of the two, I think the beta of the company has precisely estimated greater than 2. The lines of two companies show similar jumps seen by a higher beta companies.The report shows the returns of the returns of the three companies-Hershey, Lowes and Joy Global based on the beta represented on the money msn. The metrical company returns and the represented beta are then compared with the five year stock price trend graphs compared to S&P 500 Index. The trends effusively support the calculated returns and deviations. A company with beta less than 1 has less volatility and lesser returns as compared to market. A company with beta equivalent to 1 has volatility and returns equal to the market. A company with

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