Current Search:  financial ratios (x)

View All Items

  • CSV Spreadsheet
(1 - 3 of 3)
WILL LEASING LOSE ITS LUSTER: AN ANALYSIS OF LEASE REPORTING UNDER FAS 13
Title
WILL LEASING LOSE ITS LUSTER: AN ANALYSIS OF LEASE REPORTING UNDER FAS 13.
Creator
Gates, Casey, Pamela Roush, Dr., University of Central Florida
Abstract / Description
When standards for financial reporting are amended, potential for change in the appearance of financial position for companies reporting under those standards arises. Currently standards set forth by the Financial Accounting Standards Board (FASB) allow for two methods of reporting lease obligations on the financial statements. The first of these methods is the operating method, which allows lease payments to be expensed within the period they are incurred and only a decrease in cash or an...
Show moreWhen standards for financial reporting are amended, potential for change in the appearance of financial position for companies reporting under those standards arises. Currently standards set forth by the Financial Accounting Standards Board (FASB) allow for two methods of reporting lease obligations on the financial statements. The first of these methods is the operating method, which allows lease payments to be expensed within the period they are incurred and only a decrease in cash or an increase in an account payable is recognized on the balance sheet. The second method is the capital method, which requires the present value of the future lease payments to be recognized on the balance sheet as an asset and a corresponding liability. Both are reduced annually through depreciation and lease payments respectively. The FASB has recently proposed discontinuing the operating method of reporting a lease obligation and allowing only for the capital method to be used. The objective of this study is to examine some of the changes in appearance of financial position that might be brought on by this potential change in reporting standards. The airline industry has been selected to illustrate the effects of capitalizing future operating lease payments on the balance sheet. These future payments under operating leases for companies within the industry are capitalized using two different methods of depreciation. The companies are then ranked in order of proximity to an industry average for eight well known financial ratios. The rankings for each treatment on a given ratio are compared and differences between the expensed ranking and each capitalized ranking are measured and discussed.
Show less
Date Issued
2013
Identifier
CFH0004366, ucf:45011
Format
Document (PDF)
PURL
http://purl.flvc.org/ucf/fd/CFH0004366
A GLOBAL STRATEGIC FINANCIAL ANALYSIS OF THE LUXURY RETAIL INDUSTRY
Title
A GLOBAL STRATEGIC FINANCIAL ANALYSIS OF THE LUXURY RETAIL INDUSTRY.
Creator
LaVan, Lauren, Curcio, Richard, University of Central Florida
Abstract / Description
A global strategic financial analysis of the luxury retail industry was conducted. The research entailed comprehensive analyses and forecasts of the global economy, the luxury retail industry and four of the most prominent, multi-national luxury goods firms in the world. These companies included: Coach, Michael Kors, Tiffany & Co., and LVMH Moet Hennessy, whom market among the world's finest personal luxury goods from handbags, clothing and accessories to diamonds, jewelry, watches,...
Show moreA global strategic financial analysis of the luxury retail industry was conducted. The research entailed comprehensive analyses and forecasts of the global economy, the luxury retail industry and four of the most prominent, multi-national luxury goods firms in the world. These companies included: Coach, Michael Kors, Tiffany & Co., and LVMH Moet Hennessy, whom market among the world's finest personal luxury goods from handbags, clothing and accessories to diamonds, jewelry, watches, fragrances, cosmetics and wines. The macroeconomic analysis focused on factors pertinent to the luxury goods industry such as: (1) the lasting effects of the global financial crisis, our gradual emergence from the Great Recession and the impact these conditions have had on consumer spending and confidence; (2) the generational shift of consumers from the retiring baby boomers to the technologically savvy Generation Z and their unique demands for products as well as experiences; and (3) the growth and demand from emerging economies, especially China which is the globe's top luxury nationality accounting for 25% of all luxury purchases worldwide. Comprehensive financial ratio analyses, SWOT assessments, technical trends and forecasts of revenues, earnings and share prices for the four companies, resulted in recommendations to investors and advice to top management of the four firms. Luxury retail is a fascinating, recession resilient industry and it is expected to reach €1 trillion within the next 5 years. However, regardless of how successful firms in this industry have been in the past, to survive and continue to succeed, it is imperative that they remain flexible and adaptable in this ever-changing world.
Show less
Date Issued
2013
Identifier
CFH0004348, ucf:45005
Format
Document (PDF)
PURL
http://purl.flvc.org/ucf/fd/CFH0004348
MODELING LOAN LOSSES: A MACROECONOMIC APPROACH
Title
MODELING LOAN LOSSES: A MACROECONOMIC APPROACH.
Creator
Hughes, Jeremy, Smith, Stanley, University of Central Florida
Abstract / Description
A sound banking system is essential to a well-functioning economy. With the financial crisis beginning in 2007, a renewed interest in the safety of financial institutions has dominated both the political and financial landscape. Mounting loan losses in real estate lending led to the failing of over 460 banks from 2008 to 2012. This crisis is not unique; in fact, the Savings & Loan Crisis of the 1980's to early 1990's led to the closure of 700 savings institutions. Both instances created a...
Show moreA sound banking system is essential to a well-functioning economy. With the financial crisis beginning in 2007, a renewed interest in the safety of financial institutions has dominated both the political and financial landscape. Mounting loan losses in real estate lending led to the failing of over 460 banks from 2008 to 2012. This crisis is not unique; in fact, the Savings & Loan Crisis of the 1980's to early 1990's led to the closure of 700 savings institutions. Both instances created a panic in financial markets and heavy losses to deposit insurance funds. These losses are ultimately borne by taxpayers and prudently managed banks, especially if the insurance fund requires re-capitalization. The focus of this paper is on explaining the contributing factors to different categories of loan losses. Namely, total loan losses, residential real estate loan losses, commercial real estate loan losses, and commercial and industrial loan losses are examined. A multivariate regression approach is taken in this paper to explain the four rates of loan losses for the period of 2001 to 2012. Aggregate macroeconomic data from 2001 to 2012 is used to explain loan losses across categories. It was found that the delinquency rate of loans, the consumer financial obligations ratio, and the financial crisis were all significant factors in explaining loan losses.
Show less
Date Issued
2013
Identifier
CFH0004370, ucf:45001
Format
Document (PDF)
PURL
http://purl.flvc.org/ucf/fd/CFH0004370