This website uses cookies to ensure you have the best experience. Learn more

Symantec Analysis

4658 words - 19 pages

Table of Contents
Executive Summary 1
Introduction 2
Financial Structure 2
Corporate Governance 5
Value Creation for Investors 6
Market Analysis 7
Future Outlook 8
Challenges and Opportunities 8
Conclusion 9
Bibliography 10
Appendices 12
Table A 12
Table B 12
Table C 13
Chart A 13
Financial Accounts 14

Executive Summary

This report provides an overview of the financial position of Symantec Corporation (SYMC), a global provider of security, storage, and systems management solutions.
The followings areas are considered:
* The Debt and Equity position of the company are analysed. The various sources of financing used by the company are examined and ...view middle of the document...

Equity in Symantec’s case, comprises the following components: paid-in common stock; additional paid-in capital; accumulated other comprehensive income; accumulated earnings and non-controlling interest in subsidiary on an annual basis, of which additional paid-in capital is greatest.
*All figures taken from EDGAR Reports.

From the data, we can induce that Symantec’s gearing position has improved over the last four years. The debt-to-equity ratio has fallen by 34.93%, highlighting the long-term contribution brought about the investments of shareholders to the long-term capital structure has improved. This is not to say debt has decreased over the last four years, but the proportion of debt the company uses to finance its assets has reduced.
Theoretically, Symantec is relatively lowly geared, with a ratio lower than 1:1; however, Symantec’s long-term debt-to-equity ratio is exorbitantly greater than the industry average of 8.49%, portrayed in Table A of the Appendices. Nevertheless, we must not forget that this is a relatively capital-intensive industry in terms of R&D and marketing, in which Symantec’s market-capitalisation is one of the highest; see Table B.
The capitalisation ratio, a more comprehensive measure of leverage, has oscillated around 0.3 for the past four years as illustrated by Table C, indicating that the debt component of financing, taken as a factor of the overall measure, is less than that of equity, stabilising investor’s claims on assets in comparison to creditors.
The level of common stock decreased between 2009-2012, falling from $8.169m to $7m, with the largest decline as a result of a new $1bn repurchase program. Symantec does not issue dividends, instead they have had various stock repurchase programs and have repurchased shares on a quarterly basis since 2004. Additionally, as of March 2012, Symantec authorized $984m for future repurchases. Symantec does not issue preferred stocks.

Company risk is difficult to gauge precisely with a perpetual threat of non-diversifiable risk. Given the diversification of assets and multiple acquisitions in various programming arenas, one can deduce that the level of unsystematic risk is minimised. Symantec’s assets are evenly spread between current and fixed, and there is a healthy cash flow, which has augmented over the past fiscal year. Systematic risk, measured by the Beta coefficient, stands at approximately 0.84. This hypothesises that a beta of 0.84, also equal to the industry average, would have 4/5th of the average of systematic risk on the stock market. Hence, Symantec’s stocks have a volatility, which is less pronounced than the market, depicting less risk.
Given this level of risk, the mixture of debt and equity and stock structure appears justified. The retreating debt-to-equity ratio provides a positive outlook. It can also lower the risk, as investors will have larger claims on Symantec’s assets. The equity level is impacted heavily by substantial...

Other Papers Like Symantec Analysis

Jail Responsibilities Essay

589 words - 3 pages spelling, punctuation, price, and grammar. These should be thoroughly, and constantly, edited. Another thing is conciseness; this means it should be brief or limited in words. Although, concision does not mean deleting words that count just to make your statements ‘rough in manner’. Officers should avoid tired old phrases, also known as triteness. Examples of these are; “in the final analysis”, “cold as ice”, “hard as a rock”, and “last but

Mgt330 Essay

638 words - 3 pages Starbucks Nefertiti Wright Sangita Patel October 15, 2012 STARBUCKS 2 STARBUCKS - 1 - [no notes on this page]I. Job description a. Baristas II. Job specifications a. Duties III. Form of departmentalization STARBUCKS 3 Starbucks Starbucks have been named in the 100 best companies to work for. Starbucks has many job opportunities for people, which require the right job specifications. The employees create uplifting experience

Fight Club

917 words - 4 pages Fight Club is a story of the narrator’s struggle to gain control over his life. He is in search for an identity in the form of manhood. His masculinity is so repressed because of the absence of a father figure in his life. Because of this he creates Tyler, his alternate personality. Tyler is nothing like anyone the narrator has met, he is self assured and completely free. The narrators alternate personality Tyler Durden is the ultimate alpha-male

The Powers Of The Health And Safety Representative

254 words - 2 pages The Powers of the Health and Safety Representative A health and safety representative has the power to: Identify Workplace Hazards The health and safety representative has the power to identify workplace hazards. This power is usually exercised by conducting workplace inspections. Obtain Information from the Employer The health and safety representative is entitled to the same information available to a joint committee member. Under the Act

Lesson Plan

6476 words - 26 pages activities in this guidebook be adapted for your students’ needs and be carried out creatively in order to develop students’ appreciation and critical analysis of the short stories. Be ready to listen to students’ views and opinions, and encourage them to work out the answers. It is our sincere hope that the activities and worksheets in this guidebook will act as a springboard for your own ideas and methods of exploring the individual stories

Management

1227 words - 5 pages Coca-Cola Global Business and Marketing Strategy Introduction As domestic markets mature, it is becoming more and more fashionable for organisations to seek growth through opportunities in foreign countries. Faster communication, new technologies and improved transport links are making international markets more accessible and businesses pursuing a global position can experience an upsurge in brand awareness and cost effectiveness. Global

Facing Poverty With A Rich Girl's Habit

783 words - 4 pages Facing poverty with a rich girl’s habit Adele Strader Professor Chryst English Composition October 22, 2012 Facing poverty with a rich girl’s habit was written by Suki Kim and published in the New York Times on November 21, 2004. The most important point that Suki want to make was that (1) what we have in life can be taken away in an instant (2) do not go bankrupt in South Korea (3) that a person must adapt and endure

3-4-50 Paper

572 words - 3 pages -4-50 paperLack of exercise is a key contributor to disease and death among many people in the United States, regardless of age. It is a well-known fact that exercise results in a healthier lifestyle. Along with tobacco use and poor nutrition, lack of exercise is one of the main issues that people have which leads to high blood pressure, obesity, and other serious health problems. According to a study by UCSD School of Medicine and SDSU

Capitalism

836 words - 4 pages Miguel Beatrice Capitalism is an economic system in which private individuals and business firms carry out production and exchange of goods and services through complex transactions involved in prices and markets. By extension called capitalist higher social class of this economic system ("bourgeoisie"), or to the common form would the individual interests of capital owners in both companies, shareholders and patterns, also called capitalism

Sociology

1177 words - 5 pages Homelessness in America Homelessness in America is a social problem that we are faced with on a daily basis. Despite the vast number of research done by Americans on homelessness, little is still known about the effect that it has on our society. The overall image that emerges from the effects of homeless people

Mental Health Community Service Essay

509 words - 3 pages Ladesca Smith Nursing 162 Community Volunteer Service Assignment Why you chose this agency? I chose this Sharing God’s Love, because I was interested in what kind of services they provide. I also wanted to know if there was any help out there for the people in need with mental illnesses. I also had lots of my kid’s old clothing that I needed to get rid of, so I donated it to them. Describe the population the agency serves. The

Related Essays

Lafarge S.A Essay

2924 words - 12 pages NAME: IHEKANANDU KINGSLEY N. COURSE: MGMT 292 / F12 N01 TITLE: INDIVIDUAL CASE STUDY (LAFARGE S.A.) SUBMITTED: October 5, 2012 TABLE OF CONTENTS 2. INTRODUCTION 3 3. DESCRIPTION OF CASE 4 4. VALUES 4 4.1. Types of values 4 5. TEAMWORK 7 6. MOTIVATION 8 7. CREATIVITY 9 7.1. Components of creativity 9 8. CONCLUSION 12 9. BIBLIOGRAPHY 13 INTRODUCTION This report aims to provide an in-depth analysis of initiatives pursued by Lafarge as

Finance Essay

665 words - 3 pages Financial statements are the most common tool used for making business decisions. They consist of the balance sheet, income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few. A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very

Analysis Of Operation Blue Star And Its Effects On The Gandhi Dynasty

934 words - 4 pages The period of time including and following Operation Blue star is considered a dark time in India and black spot in Indian history. It is a time Indian would rather forget, yet still to this day debate about. Was Indihar Gandhi correct in instating operation Blue Star, inflicting damage to the Golden temple, and being responsible for the killing of anywhere from 492 (official reports) to 1500 (estimates run as high as) civilians, which lead to an

Regretful Decisions Essay

930 words - 4 pages Regretful Decisions There are many individuals in a child’s life that helps mold them into a well-rounded adult. In most cases, this guidance comes from the child’s parents or other older, but in Sonny’s case, this guidance was expected from his older brother. In the short narrative, Sonny’s Blues, Sonny’s life was adversely affected by the decisions that his older brother made. The decisions that his brother made include leaving Sonny to stay