9.RatiosAnalysis
LiquidityRatios
Current,quickandcashratios.SYMCcurrentandquickratiosremainequivalentto one
another from 2013 to 2016 without any increasing or decreasing within these two ratios.
Their working cash flow ratio increased significantly within these three years.Although the
current and quick remained the same SYMC, while their cash ratio increased – putting it at
almostacomputed1.50(SymantecCorporation,2017).Thisisduetoshortterm,property,plant &
equipment, goodwill, intangible and other assets decreased over this three-year span. While cash
and cash equivalents and long term investment increased much higher for these said years.
Liabilities increased due to accounts payable and deferred long tern liability charges paving the
way for these increases.Overall it appears that their assets have remained higher than their
liabilities, which places them in good standing concerning their liabilities.Please see ratios
below:
•
2013-computedCurrent Ratio:
1.15
&
2016–computedCurrent Ratio:
1.73
•
2013-computedQuick Ratio:
1.15
&
2016–computedQuick Ratio:
1.73
•
2013-computedCashRatio:
.85
&
2016–computedCash Ratio:
1.49
ProfitabilityRatios
Gross Margin.SYMC gross margin remain constant without any change within the ratio
throughout the three-year time-period from 2013 – 2016.Their sales / revenue was 6.91B
in2013and3.77Bin2016;theircostofgoodssoldincludinganydepreciationandamortization expenses
for 2013 was 1.46B and for 2016 it was 672M (SYMC, 2017).It is noticeable that their sales and
revenues far outweigh their cost of goods sold (COGS).Especially in 2016;
SYMCwasabletoreduce/decreasetheirCOGSsignificantlytakingsuchcostfromthebillions down to
the millions.Which means their gross income is in the billions due to their sales /
revenueremaininginthebillionsforthelastfiveyears,allowingtheirgrossmargintoremain constant
across these mentioned years.Please see ratios below:
•
2013-computedGross Margin: .83&2016–computedGross Margin: .83
OperatingMargin.SYMC’soperatingmarginhasdecreaseby.03from2013–2016.This is due to
their cost of revenue decreasing slightly, whereas their selling general and administrative
expenses has decrease significantly from 2.1M to 1.5M (Nasdaq, 2017).Their
researchadevelopedrosein2015,butthendroppedagainin2016,almostnearingtheirnumbers in
2014.Non-recurring expenses for their operations also decreased by more than one hundred
thousand, which signifies that although they are cutting corners they are constantly still being
efficient and effective within their market.Please see ratios below;
•
2013-computedOperating Margin: .16&2016–computedOperating Margin: .13
ProfitMargin.SYMC’sprofitmarginsincreasedsignificantlyby.58withinthethreeyears
mentioned,thisisduetoanincreaseintheirnetincomethatwentfromhighthousandsto almost
2.5M(YahooFinance,2017).Theirincometaxexpensewasintheredbyeightthousanddollars as of
their 2015-year end close, however, by their 2016-year end close SYMC income tax
expenseincreasedtoover1.2M.Theirnetincomefromcontinuingoperationsfortheiryear-end of 2016
was more than a negative eight hundred thousand. The total revenues did decrease by more than
a million dollars.Their revenue supersedes their net income by about 1.2M.Please see ratios
below and for overall financial ratios please see figure???
2013-computedProfitMargin: .11&2016–computedProfit Margin: .69
References
Porzio, M. (2016). The M&A Boom in Cybersecurity. Forbes. Retrieved from:
https://www.forbes.com/sites/mattporzio/2016/10/31/the-ma-boom-in-
cybersecurity/#5a6307c84359
SYMC Financials. (2017). Investing. Market Watch. Retrieved from:
http://www.marketwatch.com/investing/stock/SYMC/financials
SymantecCorporation.(2017).().FortMill:Mergent.Retrievedfromhttp://ezproxy.liberty.edu/login?
url=https://search-proquest-com.ezproxy.liberty.edu/docview/1860762919?accountid=12085
Yahoo Finance. (2017). SYMC Financials.Retrieved from
http://finance.yahoo.com/quote/symc/financials?ltr=1
Financial
Ratios
3/29/2013
3/28/2014
4/3/2015 4/1/2016
Period
