Question

Based on the following companies in the U.S stock market .

(i) AMD

(II) CSCO

(III) TGT

(IV) FCX

(V) IBM

(VI) MSFT

(VII) NKE

(VIII) ORCL

(IX) PEP

(X) PG

what are the following for each holding in the portfolio ?

(a) Each company profile

(b) Ticker

   (c) Name

   (d) key ratios

  

Answer 1

• AMD:

1. Company profile: AMD incorporated in 1969 is a global semiconductor company. the company is engaged in offering microprocessors & is incorporated as an accelerator processing unit, chipsets, professional graphics etc. it has two segments namely computing & graphics segment & enterprise embedded & semi conduct segments. It has direct sales force to sell its products, apart from those independent distributors & sales representatives                both in domestic & international markets.
2. Ticker: Advanced Micro Devices, Inc
3. Name: Advanced Micro Devices
4. Key ratios: key ratios for AMD would include liquidity ratios & profitability ratios.

• CSCO:

1. Company profile: the company mainly engages in design, manufacture & internet protocol based networking products & also services relating to communications & information technology industry. The product mainly comprises of switches, routers, wireless network management interfaces, next generation firewalls etc.
2. Ticker: CSCO
3. Name: Cisco Systems.
4. Key ratios: key ratios are current ratio, gross margin ratio, operating profit margin ratio, pre tax ROE etc.

• TGT:

1. Company profile: incorporated in 1902, it is a general merchandise retailer that sells the products through stores & digital channels. It offers an edited food assortment that includes perishables, dry grocery, frozen items etc. the company’s owned brands are archer farms, market pantry, Sutton & dodge, art class etc.
2. Ticker: TGT
3. Name: target corporation
4. Key ratios: it has a current ratio of around 95%, quick ratio of 30%, gross margin ratio of 29%, pretax margin of 5% etc.

• FCX:

1. Company profile: incorporated in 1987 as a mining company. it operates through geographical assets with proven reserves of copper, gold etc. its segments include refined copper products, copper in concentrate etc. it has operations in five divisions of north America, south America, Indonesia & molybdenum mines.
2. Ticker: FCX
3. Name: Freeport-McMoRan
4. Key ratios: the company has quick ratio of around 2, current ratio of 3.23, total debt to equity of 116% etc.

• IBM:

1. Company profile: it is an MNC headquartered in New York. The company started its operations in 1911. It produces & sells hardware, middleware & software. It is also a major research organization & has invented many products like atm, floppy disk, hard disk drive, sql languages etc.
2. Ticker: IBM
3. Name: international business Machine Corporation.
4. Key ratios: it has a P/E ratio of around 12, price to book ratio of 8, quick ratio of 1.2, total debt to equity ratio of around 273% etc.

• MSFT:

1. Company profile: incorporated in 1993 is a technology company. The Company develops, licenses, and supports a range of software products, services and devices. The Company's segments include Productivity and Business Processes, Intelligent Cloud and More Personal Computing.
2. Ticker: MSFT
3. Name: Microsoft Corporation.
4. Key ratios: it has a quick ration close to 300%, operating margin of 32%, profit margin of 15%, after tax ROE of 20% etc.

• NKE:

1. Company profile: it was founded in 1964 as blue ribbon sports by bowerman & knight. Then it became as Nike in 1971. It is a sponsor of many high profile athletes & sports teams throughout the world. Products of Nike includes athletic footwear & apparel, sports equipments etc.
2. Ticker: NKE
3. Company name: NIKE
4. Key ratios: it has current ratio of around 250%, pre tax ROE of 44%, operating margin of around 15% etc.

• Oracle corporation:

1. Company profile: it is an American MNC incorporated in California. It specializes in developing & marketing database software & technology, cloud engineered systems. It also develops & builds tools for database development, erp, crm etc. in 2018, it is considered to be the third largest software maker by revenue after Microsoft & alphabet.
2. Ticker: ORCL
3. Name: Oracle Corporation.
4. Key ratios: it has a current ratio of around 4, debt equity of 1.5, receivable turnover ratio close to 8, return on assets close to 3 etc.

• Pep:

1. Company profile: it operates a chain of retail stores. The company specializes in offering clothing & footwear, home ware, cellular products & baby products. It also serves customers throughout South Africa.
2. Ticker: PEP
3. Name: pep Ltd.
4. Key ratios:

• PG:

1. Company profile: it has been founded in 1837 by British American William Procter & Irish American James gamble. It specializes in hygiene products, healthcare, fabric & home care & baby, family care etc.
2. Ticker: PG
3. Name: Procter & gamble:
4. Key ratios: adjusted profit margin of 15%, return on assets of around 250%, current ratio of around 2%, quick ratio of around 1.6 etc.