Subject:

Financial administration

Topic name:

Action plan to provide financial stability

Presents:

Milis Loraine Orozco Zapata ID: 705807

Luisa Fernanda Peña Fajardo ID: 594385

Teacher:

Blanca Eugenia Tarazona Sánchez

NRC: 29076

Colombia_ Ciudad Bucaramanga Octubre, 04 de 2021

 INTRODUCTION

In the following work, a Financial report is prepared that contains the identification of
the capital structure, the short, medium and long-term financing and the dividend policies
of the Apple and IBM companies, in which the participation of each company is established
as a percentage. heading of the financial statements of the organizations, what were their
variations, what level of indebtedness had to reach to generate profits, what profitability
was obtained in the years 2016 to 2020.
 FINANCIAL REPORT APPLE

General objective

Analyze the capital structure of the APPLE company, determining generalities

about dividend policies, along with their forms of financing.

Specific objectives:

• Analyze and understand the APPLE Financial Situation Statements

• Identify the types of long and short term financing that APPLE has.
• Adequately analyze the type of leverage relating it to the capital structure.

APPLE's financial report will be prepared based on the information from the income
statements for the year 2016 - 2020

CAPITAL STRUCTURE ANALYSIS

We must bear in mind that the capital structure includes the detail of long-term
debts and capital, which is used so that companies can finance their operations and increase
the value of the company.

When we do not refer to long-term debts, they are those that are acquired with third
parties and the capital is own resources, the capital structure is chosen according to its risk-
return analysis.

Taking into account the analyzed period, which is from 2016 to 2020, we can
observe that:

Liabilities decreased exponentially, achieving great leverage against its capital,

although income was a little variable from one year to another, the most significant is that it
has managed to generate a significant return, covering debts and adapting to various
situations already the new guidelines followed by the competition.

However, thanks to the leverage they achieved from third parties, it is a good
strategy to continue like this to achieve greater stability, at the end of 2020, 46% of the
resources that the company has was financed with third-party resources, which is an
excellent figure since an independence and economic solidity is evidenced, which provides
security to investors.
 Short-term liabilities are represented by 33% of the value of liabilities, which are
not significant since thanks to their income and excellent financial organization they have
managed to obtain significant liquidity in terms of capital and value of the company in the
market.

Long-term liabilities only represent 13% of the value of the liabilities, which is
positive since the company will not have to cover many interest and other expenses that
these debts generate. Achieving strengthening other aspects of the company such as
investing in other subsidiaries or in new technological studies.

FINANCIAL REPORT IBM

General objective

Analyze the capital structure of the IBM company, determining generalities about
dividend policies, along with their forms of financing.

Specific objectives

• Analyze and understand the IBM Financial Statements

• Identify the types of long and short-term financing available to IBM
• Adequately analyze the type of leverage relating it to the capital structure.
IBM's financial report will be prepared based on the information from the income
statements for the year 2016 - 2020

CAPITAL STRUCTURE ANALYSIS

We must bear in mind that the capital structure includes the detail of long-term
debts and capital, which is used so that companies can finance their operations and increase
the value of the company.

When we do not refer to long-term debts, they are those that are acquired with third
parties and the capital is own resources, the capital structure is chosen according to its risk-
return analysis.

Taking into account the analyzed period, which is from 2016 to 2020, we can
observe that:
 Liabilities increased, although it is not a bad thing to have leverage against its
capital, although income fell from one year to the next, the most significant is that it has
managed to generate a profitability.

The leverage they achieved from third parties is a good strategy to continue
achieving stability, at the end of 2020 29% of the resources that the company has was
financed with resources from third parties, which is an excellent figure since independence
and solidity are evidenced. economic, which provides security to investors.

Short-term liabilities are represented by 26% of the value of the liabilities, which
are not significant since thanks to their income and excellent financial organization they
have managed to obtain significant liquidity in terms of capital and value of the company in
the market .

Long-term liabilities only represent 3% of the value of the liabilities, which is

positive since the company will not have to cover many interest and other expenses that
these debts generate. Achieving strengthening other aspects of the company and investing
in other needs of the organization.

Assets have decreased, but they have not had a great impact since the solidity of the
company in terms of debts with third parties shows a great job, without neglecting the
profitability it has achieved.

The improvements in terms of figures that they have obtained from one year to the
next are very good, giving great security against the competition, staying current with
technological changes and obtaining good results for their investors.
 CONCLUSION

It can be concluded that good capital management is very important for the sustainability of
any company, the management of liabilities, the profitability that you want to obtain and at
what point you want to reach it is vital to know to what extent you can or not borrow, and
how much of the company belongs to third parties.

A good analysis of the figures is the most important to not lose the point that you want to
reach and also to know when to make a change in structure or any change that improves
and optimizes the profitability of an organization