Companyfinacialmatrix Group Work 2-2

BusinessCom 2.0/Winter09/COMPANY FINANCIAL MATRIX COMPANY: Microsoft Corporation INCOME STATEMENT 08.6.30-09.6.30 Revenue ($mil.) 58,437.00 Gross Profit ($mil.) 46,282.00 Operating Income ($mil.) 20,363.00 Total Net Income ($mil.) 14,569.00 EPS 1.65 STRENGTHS:

06.6.30-07.6.30 51,122.00 40,429.00 18,438.00 14,065.00 1.42

△% 14.3 14.5 10.4 3.6 16.2

1. The revenue of Microsoft Corporation increased by about 14.3% which indicated that the company had a good operation for the two years. 2. Microsoft Corporation managed to increase its gross profit and operating income with a big percentage during the period .It is a huge plus for the company’s profitability. 3. From calculation, I know that the cost of sales of MSFT was controlled strictly compared with its big sales increase. 4. The total net income –for the company has increased about 3.6% from 2006 to 2009, which is a highly favorable. WEAKNESSES Compared with its big increase of revenue , the total net income had a small increase which is about 3.6%. It indicated that maybe its operating expenses and interests expense had a bigger increase.

CASH FLOW STATEMENT Net Operating Cash Flow ($mil.) Net Investing Cash Flow ($mil.) Net Financing Cash Flow ($mil.)

08.6.30-09.6.30 19,037.00 (15,770.00) (7,463.00)

06.6.30-07.6.30 17,796.00 6,089.00 (24,544.00)

STRENGTHS: 1. In 2008 and 2009, MSFT had a much higher net operating cash flow which indicated that much more cash was generated from the company’s products and services. 2. From 2006 to 2009，the mainly cash flow of MSFT was sill the net operating cash flow that represented the company had a positive operation. 3. MSFT increased the net financing cash flow. Maybe it issued more bonds to the public and borrowed more money from the bank or paid less dividends to the shareholds. WEAKNESSES The net investing cash flow had a big decrease during the period . So maybe the company used more money to buy new equipment, buildings and short-term assets.

BusinessCom 2.0/Winter09/COMPANY FINANCIAL MATRIX (Page 2/3) COMPANY: Haier INCOME STATEMENT Revenue Gross Profit Operating Income Total Net Income EPS

2008 3231464.41 113712.67 3040803.93 76817.81 0.5740

2007 3041712.24 88011.49 2946864.55 64363.20 0.4810

2006 2457978.37 80640.02 2321430.44 55607.91 0.4150

In 2008 compared to 2006, all of the incomes were increased. Enterprise business conditions are good and the state of business. EPS has been sustained growth in three years, giving investors a lot of confidence.

CASH FLOW STATEMENT Net Operating Cash Flow) Net Investing Cash Flow Net Investing Cash Flow

2008 131788.96 -105584.08 -22299.44

2007 127885.75 -30128.83 -31236.83

2006 137818.22 -16723.54 -19831.54

The cash flow in 2006 was 101263.14,but in 2008 was 3905.44,it was decreased.It means that the money which used to buy new inventory has decreased.

BusinessCom 2.0/Winter09/COMPANY FINANCIAL MATRIX (page 3/3)

COMPANY: China Petroleum & Chemical Corporation INCOME STATEMENT Revenue ($mil.) Gross Profit ($mil.) Operating Income ($mil.) Total Net Income ($mil.) EPS

2009.6 816，342 43，768 46，182 34，650 0.383

2008.12 763，297 7，610 6，837 7，749 0.088

% 6.9 475.13 575.5 347.15 332.6

CASH FLOW STATEMENT Net Operating Cash Flow ($mil.) Net Investing Cash Flow ($mil.) Net Investing Cash Flow ($mil.)

2009 82，370 43，940 37，838

2008 5，994 46，303 41，147

% 1274.2 (5.1） (8.04)

From the above figures, we can clearly get to see between 2008 and 2009, China Petroleum & Chemical Corporation managed to increase revenue by 6.9%, and gross profit , operating income also achieved a substantial increase in. The company's cash flows primarily from cash flow generated from operating activities, on behalf of the businesses can use their economic resources and the ability to create a very strong cash flow. Cash from operating activities is very high growth rates, indicating the growth of the enterprise is very good, and also can enhance the confidence of investors.