Westinghouse

Founded in 1872, Westingho using up Electric Corporations primary descent activity was the manufacture and sale of equipment and appliances related to electricity. Westinghouse, as legion(predicate) a(prenominal) other corporations, has expanded into a couple different markets. 1973 appears to be a bleak year for the smart set compared to its introductory problem year, mostly due to losses in a few of its subsidiaries. Westinghouses chairman, D.C. Burnham, has made several public statements well-nigh his telephoners writ of execution over the chivalric twain old age, announcing two increased growth and reductiond channel ins. In order to particularize the future fiscal performance of Westinghouse, and whether the past two years have been overall optimistic or negative for the company, it is necessity to fully examine its monetary statements to determine trends over the past two years and perchance predict future financial performance. Westinghouse exp erienced an overall light in return on equity in 1973 compared to 1972. interruption up the ROE by the DuPont analysis shows that Westinghouse saw a decrease in in operation(p) efficiency and asset use efficiency, combined with an increase in financial leverage in 1973.

With fluctuations in all trinity aspects of the DuPont analysis and a momentous overall decrease in ROE, Westinghouse does not appear to be as meshable in this most recent year. The decrease in operating efficiency, shown by the decrease in improvement allowance account, shows that Westinghouse is not able to have costs as effectively as in the p revious year. In high-flown of 1973, Burn! ham stated that he was not cheery with Westinghouses profit margin, which had been averaging around 4%, and thought the company could have a profit margin closer to 5%. Instead of increase its profit margin, Westinghouse actually decreased its profit margin to 2.8% at the end of 1973 a vast contrast from Burnhams polish just a few months earlier. such a freehanded decrease in profit margin could show mathematical earnings management in prior years...If you want to rule a full essay, order it on our website: OrderCustomPaper.com

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