Capital Stock
Targets composition of contributed capital is characterized by equity and debt. On this note, the company has split the two sources of capital almost equally with equity accounting for $11.17 billion while debt represents $11.15 billion. In relation to equity ownership, the company major contributors are institutions ($60 billion), mutual funds ($30 billion), and insiders ($73 million).
The accounts that are included in the stockholders equity include common stocks, capital surplus, retained earnings, and treasure stock. There is also the inclusion of an account titled other equity, which represents stocks such as those held by insiders.
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However, the company did not make any treasury stock transactions in the current year.
Retained Earnings
Retrained earning = 2,512,000,000 + 2,934,000,000 – 1,338,000,000
= $4,108,000
The retained earnings of the company have increased significantly in the current financial year. The rationale behind the increment is that the company has improved its performance in its income generating activities including operations and investment. Tersely, the company’s ability to maximize on using its assets to generate revenue and reducing its operational costs has had a positive effect on the retained earnings.
Analysis
Return on Stakeholders equity:
ROE = 2,934,000,000 / 11,709,000,000
= 0.25
The ratio indicates that the company is efficient in using the investments of the stockholders to generate income, which in turn makes profits for the investors. A ratio of 0.25 indicates that the company is efficient in its operations and therefore should be attractive to the investors.
Earnings Per Share
EPS = (2,934,000,000 – 0) / 45,000,000,000
= 0.065
The analysis of the earnings per share indicates that the company is profitable on the perspective of the shareholders. On this note, the company is capable of ensuring that all shareholders are provided with an ideal means of earning yield for their investments in the company’s operations.
Dividends
The company has been noted for its ability to pay dividends to the stockholders on a regular basis. On this note, the company’s operations are efficiently run, which indicates that the investors can risk their funds with the company and subsequently gain significant yields, which is profitable to institutions and people who have committed their money to the organization.
