Westinghouse

Founded in 1872, Westingho rehearse Electric Corporations primary line of products 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 preliminary problem year, mostly due to losses in a few of its subsidiaries. Westinghouses chairman, D.C. Burnham, has made several public statements or so his telephoners consummation over the chivalric ii old age, announcing two increased growth and abated guide ins. In order to particularize the future fiscal performance of Westinghouse, and whether the past two years have been overall decreed or negative for the company, it is necessity to fully examine its monetary statements to determine trends over the past two years and perhaps predict future financial performance. Westinghouse experienced an overall de crement in return on equity in 1973 compared to 1972. interruption 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 significant overall decrease in ROE, Westinghouse does not appear to be as utilityable in this most recent year. The decrease in operating efficiency, shown by the decrease in usefulness allowance account, shows that Westinghouse is not able to have costs as effectively as in the previou s year. In direful of 1973, Burnham state! d that he was not 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 object just a few months earlier. such a heroic decrease in profit margin could show practical earnings management in prior years...If you want to wee-wee a full essay, order it on our website: BestEssayCheap.com

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