Financial Performance Analysis of Business Un Ltd and Competitor

This research proposal presents a financial analysis of Business Un Ltd, examining its financial performance based on income statements and balance sheets derived from the trial balance. The analysis includes an evaluation of WACC indicators and capital structure. Ratio analysis is conducted to compare Business Un Ltd with its competitor, Business Success LLC. The report forecasts the company's performance for the upcoming fiscal year and offers recommendations for the Board of Directors. Furthermore, the paper presents a comparative analysis of Advanced Micro Devices, NVIDIA Corporation, and Activision Blizzard for potential investment, culminating in a selection from the list. The financial analysis of the chosen company is based on reports from the security exchange market, with detailed calculations of liquidity, activity, and profitability ratios. The analysis reveals both companies face challenges covering short-term obligations and shows inefficiencies in inventory management, which impacts profitability. The report concludes with a comprehensive evaluation of the company's financial health and investment potential.

RESEARCH PROPOSAL
This paper includes a financial analysis of the hypothetical company Business Un Ltd conducted on behalf of its financial managers. The analysis covers the financial
performance of the Company based on Income Statement and Balance Sheet, which are calculated using the information provided in Trial Balance. The research also addresses WACC
indicators for investors as well as capitalization of the Company by means of capital structure composition. Furthermore, financial statements will serve as a basis for calculating ratio
analysis to compare the performance of the Company with its competitor, Business Success LLC. The outcome of financial analysis will reflect predictions on the Company’s
performance in the next fiscal year, highlighting relevant recommendations for the Board of Directors.
Furthermore, this paper indicates the comparative analysis of companies (Advanced Micro Devices, NVIDIA Corporation, and Activision Blizzard) for potential investment.
The outcome of the analysis is reflected in the procedure of choosing one company from the list. The financial analysis of the company chosen for investment is composed from the
reports obtained from the security exchange market.
INCOME STATEMENT
BUSINESS UN LTD. for the year ending December 31, 2019
Debit Credit %
Sales 11 634 778
Returns inwards 87 219
Net Sales 11 547 559 100.0%
Cost of Goods Sold: 7 648 839 66.2%
Opening stock 221 036 1.9%
Purchases 7 710 690 66.8%
Return outwards 151 185 1.3%
Carriage inwards 57 698 0.5%
Stock available for sale 7 838 239 67.9%
Closing stock 189 400 1.6%
Gross profit 3 898 720 33.8%
Operating expenses 3 599 792 31.2%
Distribution costs: 951 171 8.2%
Wages & salaries: sales staff 144 245 1.2%
Selling and distribution expenses 548 130 4.7%
Depreciation:
plant and machinery 115 107 1.0%
buildings 114 840 1.0%
Carriage outwards 28 849 0.2%
Administrative expenses: 2 648 621 22.9%
Wages & salaries: admin staff 865 468 7.5%
Other admin expenses 432 734 3.7%
Directors’ remuneration 721 224 6.2%
Bad debts 30 118 0.3%
Discounts allowed 214 425 1.9%
Depreciation:
plant and machinery 213 771 1.9%
buildings 93 960 0.8%
Audit fee 100 000 0.9%
Decrease in provision for Bad & Doubtful Debt 23 079 0.2%
Operating profit 298 928 2.6%
Debenture interest 103 854 0.9%
Profit on ordinary activities before tax 195 074 1.7%
Taxation 160 000 1.4%
Profit on ordinary activities after tax 35 074 0.3%
Profit and Loss Appropriations:

Ordinary share dividends – proposed 276 944
Preference share dividends – proposed 51 930
Retained losses for year -293 800
Profit and Loss b/f 952 015
Profit and Loss c/f 658 215
The income statement shows that the company brought in a total of $11,634,778 through sales, and it cost approximately $7,648,839 to achieve those sales, for a gross profit
of $3,898,720. A total of $951,171 in distribution expenses, and $2,648,621 in administrative expenses, were subtracted from that profit, leaving an operating income of $298,928. To
this, debenture interest and taxation were subtracted and dividends were paid. The end result is that the company saw a net loss of $293,800 for the year.
BALANCE SHEET
BUSINESS UN LTD. as at December 31, 2020
Fixed Assets: Cost Accumulated
Depreciation Provision Net Book Value
Land and buildings 4 615 830 208 800 1 153 958 3 253 072
Plant and machinery 5 481 300 328 878 2 019 500 3 132 922
6 385 994
Current Assets:
Stocks 189 400
Trade debtors 1 153 950
Less provision for Bad & D. Debt 57 698
Adjustment 23 079 1 119 331
Cash 28 849 1 337 580
Current liabilities:
Trade creditors 1 081 835
Bank overdraft 432 734
Taxation payable 160 000
Audit fee 100 000
Dividends payable: preference 51 930
ordinary 276 944 2 103 443
Working capital (Net Current Assets) -765 863
Capital employed 5 620 131
Long term liabilities:
Debentures 1 730 900
Net worth 3 889 231
Capital and reserves:
Issued capital:
ordinary shares of $1 each 1 730 900
preference shares of $1 each 865 500 2 596 400
Reserves:
Share premium 346 127
Revaluation reserve 288 489
Profit and Loss Account 658 215 1 292 831
2

At the end of 2019, Business Un Ltd owned $7,723,574 in total assets, had debts totaling $3,834,343, and had total stockholders’ equity of $3,889,231.
FINANCIAL RATIO ANALYSIS
Financial ratio analysis mostly used by financial managers, investors to evaluate the performance of the company in particular time. It also helps to compare the company
within other companies and across industries by developing a sense of company’s attractiveness based on its financial strength, profitability and competitive position.
Liquidity ratios
Liquidity ratios are used to measure company’s ability to meet is short-term obligations with its current assets. It provides practical insight into the cash solvency of the
company in the face of difficulty. Within high liquidity ratio, company has greater ability to pay off its current liabilities.
Current ratio
Current ratio is helpful tool to assess the level of company’s short-term liquidity with respect to its current assets and current liabilities.
Current ratio= Current assets
Current liabilities
Current ratio "Business Un Ltd" "Business Success LLC"
2019
$ 1,337,580
$ 2,103,443 =0,64׿ $ 1,985,549
$ 2,234,381 =0.89׿
Based on the current ratio, both company faces with difficulties in covering their short-term obligations. “Business Un LTD” is less liquid than “Business Success LLC”. It
means that current assets of “Business Un LTD” were 0.36 times less than its value of current liabilities. To be precise, the company had $ 0.64 in current assets for every $ 1 in current
liabilities, compared to Business Success LLC’s current ratio of 0.89. By looking at the financial statements, investors consider both companies have lack of resources to pay its short-
term debts instantly. Current ratio of less than one can be seen warning indicator, but different situation may affect the current ratio in a company. Some large retailers offer credit to its
customers and minimize their inventory volume through an efficient supply chain that make current assets shrink against current liabilities. Moreover, having current ratio more than 1
shows the company’s financial health and ability to pay its short-term debts without challenge. However, ratio over 3 may indicate that company is not managing its working capital
efficiently.
Despite being an effective tool for determining a company’s ability to cover its current liabilities with its current assets, the current ratio is regarded as an approximate
measure as it does not take into account liquidity of individual components of the current assets.
Quick ratio
In comparison with current ratio, quick ratio excludes inventories, which are the least liquid assets in analyzing company’s liquidity, in measurement of liquid assets with its
current liabilities.
Quick ratio=Current assets−Inventory
Current liabilities
Quick ratio "Business Un Ltd" "Business Success LLC"
2019
$ 1,148,180
$ 2,103,443 =0,55׿ $ 1,129,709
$ 2,234,381 =0.51׿
Quick ratio shows that both company has difficulties in covering its current liabilities. It indicates that if “Business Un LTD” liquidated all of its current assets excluding
inventories it would cover almost 55% of its short term debts. Similarly, Business success LLC’s quick ratio 0.51 indicates that firm can only cover around 50% of maturing obligations
by using all cash on hand and monetizing its account receivable at the recorded value. It should be also noted, Business success LLC has relatively low quick ratio in comparison to the
current ratios that makes the company dependent on inventories to fulfil its maturing obligation.
Summary of liquidity
Comparing both companies current and quick ratios it is revealed that both company has difficulty in covering its short term obligation with its current assets. In addition,
Business Un LTD’s found exceptionally unfavorable because of their excessive reliance on account receivable which constitutes almost 84% of its current assets. Whereas Business
Success LLC has high dependency in inventory and account receivable.
Activity ratio
Activity ratio illustrates the efficiency of company in leveraging the assets on its balance sheet, to generate revenue and cash.
3

Average collection period
Average collection period measures the level of collection of outstanding bills by company and is determined by dividing accounts receivable by daily credit sales.
Average collection period= Accountsreceivable
Daily credit sales = Accountsreceivable
Credit sales ÷365
Average collection period "Business Un Ltd" "Business Success LLC"
2019
$ 1,153,950
( $ 11,547,559
365 )
=36 days $ 1,141,120
( $ 11,496,784
365 )
=36 days
Based on figures it can be seen both company’s average collection period are 36 days. It means that company collects and turns into cash its customer bills in 5 weeks or 10
times a year (365 ÷ 36).
Average payment period
Average payment period is a solvency ratio and measures average number of days that takes a company to pay its suppliers for purchase made on credit. It is calculated by
dividing accounts payable by daily purchases on credit. Average payment ratio is considered as a key ratio on evaluation of company’s cash flow management. Low indicator of the
average payment period compared to the peer companies suggests that company is having difficulties in paying its maturing bills.
Average payment period= Accounts payable
Daily credit purchases = Accounts payable
Credit purchases ÷365
Average payment period "Business Un Ltd" "Business Success LLC"
2019
$ 1,081,835
( $ 7,648,839
365 )
=52days $ 1,069,800
( $ 7,958,057
365 )
=49 days
The payable turnover of “Business Un Ltd” falls within the range of 7.0 times (365 ÷ 52) showing that on average the company paid off the credit 7 times. Whereas
Business Success LLC’s payable turnovers falls in 7.45 (365 ÷ 49). The low payable turnover does not signal on bad management. It can be considered as Business Un Ltd is
better off by keeping its cash and using opportunity to invest on different investment projects.
Inventory turnover
Inventory turnover measures the liquidity turnover, which is calculated by dividing cost of goods sold (COGS) by inventory.
Inventory turnover =Cost of goods sold
Inventory
Inventory turnover "Business Un Ltd" "Business Success LLC"
2019
$ 7,648,839
$ 189,400 =40.4׿ year $ 7,958,057
$ 855,840 =9.3׿ year
It can be seen Business Success LLC performs inefficiently in inventory management and indicates very poor result in contrast with Business Un Ltd. The company turns
over its inventory 9-10 times in a year. The reason of the low inventory turnover maybe having huge share of slow moving products in inventory. In contrast, Business Un Ltd manages 4
times efficiently than its counterpart.
Profitability ratio
In investment analysis, profitability ratio is widely used and measure company’s ability to earn appropriate return with the help of investment and sales. These ratio is
helpful in determination overall effectiveness of operation.
4

Gross profit margin measures profitability of a company regarding to sales after deduction of cost of goods sold.
Gross profit margin= Gross profit
Net sales
Gross profit margin "Business Un Ltd" "Business Success LLC"
2019
$ 3,898,720
$ 11,547,559 =33.76 % $ 3,538,727
$ 11,496,784 =30.78 %
Both company experienced almost similar gross profit margin ratio. It can be seen that Business Un Ltd for every $ 1 of revenue company generated 0.338 is available after
deducting cost of goods sold. In the same vein, Business Success LLC for every 1$ sales the company generates 0.31 cents.
Operating profit margin is measured by dividing operating profit by revenue and determine the relationship between sales and controllable cost of company.
Operating profit margin= Operating profit
Net sales
Operating profit margin "Business Un Ltd" "Business Success LLC"
2019
$ 298,928
$ 11,547,559 =2.59 % $ 881,333
$ 11,496,784 =7.67 %
It can be seen that the operating profit margin of Business Un Ltd is 2.59% which shows company’s earnings from operation is lower than its counterpart which constitutes
7.67%. In other words, Business Un Ltd’s earnings from operation constitutes $ 2.6 for every $100. Whilst Business Success LLC operation earnings is $7.67 for every $100. The reason
of having good profit margin can be exemplified by competitiveness of company in keeping costs and expenses in line relative to sales.
Net profit margin
Net profit margin measured by dividing net income by revenue and helps to analyze company’s ability to translate sales into earnings for stakeholders.
Net profit margin= Net profit
Net sales
Net profit margin "Business Un Ltd" "Business Success LLC"
2019
$ 35,074
$ 11,547,559 =0.3 % $ 495,749
$ 11,496,784 =4.31 %
It can be observed business Un Ltd has low net profit margin ratio in comparison with other business success LLC. Analyses shows that very low results indicate that
company cannot use current assets and manage working capital properly. In other words, company compensates shareholders $ 0.003 for every one dollar sales. This shows the business
does not make sufficient profit to the shareholders.
Total asset turnover
Total asset turnover examines the level of efficiency in utilization of total assets to generate sales.
Total asset turnover= Net Sales
Total assets
Total asset turnover "Business Un Ltd" "Business Success LLC"
2019
$ 11,547,559
$ 7,723,574 =1.5׿ $ 11,496,784
$ 8,261,709 =1.39׿
5

The asset turnover ratio is calculated on an annual basis. It is observed that both company have good efficiency in generating revenue by using its assets. To be precise, for
every dollar in assets, Business Un Ltd generated $ 1,5 in sales, whilst Business success LLC generated $ 1,39. High ratio in total asset turnover shows the effectiveness of companies in
usage of assets to generate revenue.
Solvency ratio
Solvency ratio is used in evaluation company’s ability to meet its long term obligations. The ratio gives a practical overview into the capital structure and level of financial
leverage used by company.
Debt ratio
Debt ratio is one of the necessary ratio to measure the percentage of company’s total assets financed by debt, with realizing the remained percentage is financed by equity.
Debt= Total debt
Total assets
Debt ratio "Business Un Ltd" "Business Success LLC"
2019
$ 3,834,343
$ 7,723,574 =49.64 % $ 3,946,061
$ 8,261,709=47.76 %
The debt ratio shows that Business Un Ltd’s 49.64% of asset was financed by debt, whereas its counterparts 47.76 % of total assets was financed by debt. Figure 1.1 and 1.2
illustrates the structure of financing Business Un Ltd and Business Success LLC companies’ assets in 2019. The shareholder of Business Un Ltd invested $3,889,231 (50.36%), whilst
almost $3,834,343 (49.64%) was borrowed by company to finance $7,723,574 to generate $35,074.
Figure 1.1 Business Un Ltd’s Net profit in 2019 resulting from asset investments
Figure 1.2 Business Success LLC’s Net profit in 2019 resulting from asset investments
6
Debt (49.64%)
$3,834,343Equity (50.36%)
$3,889,231
Used to
finance Total Assets
$7,723,574
Generated
Net Income
$35,074

Similarly, stakeholder of Business success LLC raised $8,261,709 worth asset to generate $ 495,749. It can be seen that net profit of Business Un Ltd is much low in
comparison with the Business Success LLC. The low profit indicates bad performance management of the Business Un Ltd in 2019.
Times on interest earned
One of the important measurement in regard to company’s financing decision, it is the calculation of the amount of operating income available to pay the interest expense.
¿ interest earned =Operating income
Interest expense
High ratio indicates that company has sufficient amount of earnings to make interest payments.
Times on interest earned "Business Un Ltd" "Business Success LLC"
2019
$ 298,928
$ 103,854 =2.9׿ $ 881,333
$ 85,584 =10.30׿
The ratio shows that Business Un Ltd can afford its annual interest charges almost 3 times whereas, Business Success LLC can cover more than 10 times of its interest
expense by its operating income. To be precise, both companies do not face with the difficulties in serving its annual interest expense. It should be also noted that Business Success LLC
is much financially healthier than its counterpart in paying its interest expense.
Return on Investment
Return on investment is considered as performance measurement that evaluates the level of efficiency of an investment made in assets.
Return on assets
Return on assets evaluates the level of efficiency based on investments to assets. In contrast to the net profit and total asset turnover, the return on asset ratio provides better
measurement of overall effectiveness of firm’s asset. Because, total asset turnover ignores assets profitability on sales, whereas net profit does not take into account the level of
utilization of assets.
ROA=Net profit margin ×Total asset turnover = Net profit
Net Sales × Net Sales
Total assets = Net profit
Total assets
Return on assets "Business Un Ltd" "Business Success LLC"
2019
$ 35,074
$ 7,723,574 =0.45 % $ 495,749
$ 8,261,709=6.00 %
Figure 1.2 Analysis of Business Un Ltd and Business Success LLC Return on Asset in 2019
7
Debt (47.76%)
$3,946,061Equity (52.24%)
$4,315,648
Used to
finance Total Assets
$8,261,709
Generated
Net Income
$495,749
Return on assets= Net profit
Total assets
Business Un Ltd 0.45%
Business Success LLC 6.00%

Accountsreceivable
turnover
Inventory
turnover
¿ asset
turnover
Figure 1.2 compares Business Un Ltd and Business success LLC’s operating and asset management performance graphically in order to define Business Success LLC’s
high return on assets to Business Un Ltd by looking at two parts: asset turnover and net profit margin. It can be seen that with net profit margin 4.3% and total asset turnover 1.39,
Business success llc has relatively high return power on assets – 6% than Business Un Ltd which constitutes almost 0.45%. Business Success LLC get higher return on its assets than
Business Un Ltd by managing its operations efficiently and generating higher after-tax profit (6 cents compared to 0.45 cents, Moreover, company utilizes its asset in efficient way as it
is reflected in an total asset turnover (1.5x versus 1.39x). However, Business Un Ltd’s total asset turnover is driven by superior inventory turnover (40.38 times compared to 1.39 times
for Business Success LLC).
Return on equity
Another summary measurement of overall company’s performance which gives information about accounting return on common stockholder’ investment is return on
equity. It helps to evaluate attractiveness of earnings available to the firm’s owners.
Returnon Equity= Net income
Commonequity
The ratio indicates the power of earning on common shareholders book value investment. A higher return on equity signals that company can accept strong investment
opportunities, whilst company can take relatively high debt for getting higher return on equity with excessive financial risk.
Return on equity "Business Un Ltd" "Business Success LLC"
2019
$ 35,074
$ 1,730,900 =2.0 % $ 495,749
$ 1,711,680 =29 .00 %
It is found that the shareholders of Business Un Ltd receive less return on their investments than its counterparts. To be precise, for every $ 1 shareholder’s equity, Business
Un Ltd and Business success LLC generated 2 and 29 cents in net income respectively.
PREDICTIONS FOR THE NEXT YEAR
CAGR stands for the Compound Annual Growth Rate, which is used to predict the future earnings of companies, as well as to compare past investments.
In the case of Business Un Ltd,
EV = 658 215, BV = 952 015, n = 1
CAGR is equal to - 31% since the growth decreases by 31%, so we multiply our future indicators (Sales, Gross Profit, Operating Expenses, and etc.) by 69%.
8
Return on
assets =
Net profit
margin × Total asset
turnover
Business Un Ltd 0.30%
Business Success LLC 4.31%
Business Un Ltd 1.50x
Business Success LLC 1.39x
Business Un Ltd 10.00x
Business Success LLC 10.01x
Un Ltd 40.38x
Success LLC 9.30x
Un Ltd 1.81x
Success LLC 1.83x

Year 2019 2020 (Forecasting year)
Sales 11 634 778 8 027 997
Gross Profit 3 898 720 2 690 117
Operating Expenses 3 599 792 2 483 856
Operating income 298 928 206 260
EBIT 195 074 134 601
Net Income 35 074 24 201
Retained earnings 658 215 454 168
From the above, it can be seen that future forecasts are very pessimistic and the company needs to decrease costs. First, the company should spend all the proceeds received
to increase turnover. Secondly, not to pay dividends for the next few years, but to spend on the company's capitalization. Moreover, the company should elaborate (develop) a financial
cushion in case of force majeure situations such as Pandemic (COVID - 19).
CAPITAL STRUCTURE
The capital structure refers to a combination of debt and equity that company uses to finance its overall operations (Investopedia, 2020). In case of Business Un
Ltd. debt is comprised of debentures, loans, taxation, and audition expenses, while equity includes common stock, preferred stock, and retained
earnings.
Capital structure is calculated by means of the following formula:
Capital Structure = Debtors + Total Shareholder Equity
7,723,574= 3,834,343 + 3,889,231
Debt 3,834,343 (49.6%)
Equity 3,889,231 (50.4%)
In order to determine the level of leverage, the debt-to-equity ratio should be utilized (Hayes, 2020):
Debt to Equity Ratio = Total Liabilities 3,834,343
Total Equity = 3,889,231 = 0.98
From the calculations above, we found out that the leverage level of Business Un Ltd. is favorable because no more than half of the Company’s assets is financed by debts.
WEIGHTED AVERAGE COST OF CAPITAL
WACC = (E/V x Re) + ((D/V x Rd) x (1 – T))
Capital of company:
P - Preferred shares for $1 865 500 865 500
O - Ordinary share for $3,08
( O * Market price)
1 730 900 5 331 172
D - Debenture loans 1 730 900 1 730 900
V = P + O + D 7 927 572
Formula: WACC = wd*kd+wps*kps+wcs*kcs
WACC = (P/V x kp) + (O/V x ko) + (D/V x kd)
wd = weight of debt; kd =cost of debt; wps = weight of preferred shares; kps =cost of preferred shares
wd = D/V; wps = P/V; wcs=O/V
Market price 3.08
kp 0.06 ( P / V ) * kp 0.109176
9

ko 0.16 ( O / V ) * ko 0.672485
kd 0.06 ( D / V ) * kd 0.218339
WACC 0,127248484 12.72%
INVESTMENT OPPORTUNITIES
Literature review
Financial ratios are classic and fundamental force for planned stock analysis, despite different financial and accounting models. Consequently, the literature often mentions
the explanation of changes in stock prices using financial coefficients, which is discussed by financial analysts and scientists. For example, Beawer observed price changes randomly
over time and attempted to use the previous amount to predict price (1966). To complete evaluation, he researched indicators of dividend yield, return on capital, the ratio of price to
profit and to the market, various indicators of interest rates to test the forecast of stocks and returns (Beawer, 1966). Additionally, Campbell analyzed the correlation between the stock
price and accounting information using the empirical method for the annual report and the stock price (1998). Followed scientists have found that companies with excessive profits
allowed investors to achieve abnormal returns, which indicates a direct relationship. The next study was provided by Johnson and Zhao (2012), who describe statements about
accounting for information from investors when trading stocks. In addition, they examined the impact of information about operating cash flows and their impact on the share price,
which is not absolute. One of the most important studies was conducted by Fama and French (2002), where companies' profits were determined using stock market coefficients. Their
study suggests that there is a high correlation between the analysis of financial ratios and profitability and predictability. Thus, they accurately determined the profitability of financial
analysis using financial indicators to determine the best stock selection for investments.
Stock is most common actively traded security and on the stock market, which allows the stockholder to have the right to obtain profit from the dependence of the
company's gaining and considered, in the long term, as the main source of financing for the company. Additionally, a shareholder has the right to own a part of the company from a
certain percentage and participate in the Board of Directors and shareholders’ meetings. The share price can rise and fall in relation to various external and internal factors. There are two
types of stocks available: common and preferred shares. Common shares allow owners to be present at shareholder meetings, while preferred shareholders receive profit in the form of
dividends earlier in the event of bankruptcy, but do not have the right to vote on annual meetings (Eccles, 2019).
Advanced Micro Devices Stock Analysis
Total Revenue 2801 1932 1786 2127
Revenue 2801 1932 1786 2127
Other Revenue, Total - - - -
Cost of Revenue, Total 1571 1084 968 1178
Gross Profit 1230 848 818 949
Total Operating Expenses 2352 1759 1609 1907
Selling/General/Admin. Expenses, Total 273 215 199 206
Research & Development 508 460 442 395
Depreciation / Amortization - - - -
Interest Expense (Income) - Net Operating - - - -
Unusual Expense (Income) - - - 128
Other Operating Expenses, Total - - - -
Operating Income 449 173 177 220
Interest Income (Expense), Net Non-Operating -11 -14 -13 -17
Gain (Loss) on Sale of Assets - - - -
Other, Net -37 1 4 2
Net Income Before Taxes 401 160 168 205
Provision for Income Taxes 12 4 6 48
Net Income After Taxes 389 156 162 157
Minority Interest - - - -
Equity In Affiliates 1 1 - -
U.S GAAP Adjustment - - - -
Net Income Before Extraordinary Items 390 157 162 157
Total Extraordinary Items - - - 13
Net Income 390 157 162 170
10

Total Adjustments to Net Income - - - -
Income Available to Common Excluding Extraordinary Items 390 157 162 157
Dilution Adjustment - 2.51 - 8.2
Diluted Net Income 390 157 162 170
Diluted Weighted Average Shares 1215 1227 1224 1159
Diluted EPS Excluding Extraordinary Items 0.32 0.13 0.13 0.14
DPS - Common Stock Primary Issue - - - -
Diluted Normalized EPS 0.32 0.13 0.13 0.22
Table 3. Income statement of AMD (Investing.com, 2020c)
NVIDIA Corporation Stock Analysis
Total Revenue 4726 3866 3080 3105
Revenue 4726 3866 3080 3105
Other Revenue, Total - - - -
Cost of Revenue, Total 1766 1591 1076 1090
Gross Profit 2960 2275 2004 2015
Total Operating Expenses 3328 3215 2104 2115
Selling/General/Admin. Expenses, Total 515 627 293 287
Research & Development 1047 997 735 738
Depreciation / Amortization - - - -
Interest Expense (Income) - Net Operating - - - -
Unusual Expense (Income) - - - -
Other Operating Expenses, Total - - - -
Operating Income 1398 651 976 990
Interest Income (Expense), Net Non-Operating -46 -41 6 28
Gain (Loss) on Sale of Assets - - - -
Other, Net -4 -1 -1 -2
Net Income Before Taxes 1348 609 981 1016
Provision for Income Taxes 12 -13 64 65
Net Income After Taxes 1336 622 917 951
Minority Interest - - - -
Equity In Affiliates - - - -
U.S GAAP Adjustment - - - -
Net Income Before Extraordinary Items 1336 622 917 951
Total Extraordinary Items - - - -
Net Income 1336 622 917 951
Total Adjustments to Net Income - - - -
Income Available to Common Excluding Extraordinary Items 1336 622 917 951
11

Dilution Adjustment - - - -
Diluted Net Income 1336 622 917 951
Diluted Weighted Average Shares 630 626 622 621
Diluted EPS Excluding Extraordinary Items 2.12 0.99 1.47 1.53
DPS - Common Stock Primary Issue 0.16 0.16 0.16 0.16
Diluted Normalized EPS 2.42 1.49 1.48 1.55
Table 4. Income statement of NVIDIA Corp (Investing.com, 2020b)
Activision Blizzard Stock Analysis
Total Revenue 1954 1932 1788 1986
Revenue 1954 1932 1788 1986
Other Revenue, Total - - - -
Cost of Revenue, Total 469 469 505 657
Gross Profit 1485 1463 1283 1329
Total Operating Expenses 1207 1183 1176 1532
Selling/General/Admin. Expenses, Total 424 417 410 551
Research & Development 274 291 238 296
Depreciation / Amortization - - - -
Interest Expense (Income) - Net Operating - - - -
Unusual Expense (Income) 40 6 23 28
Other Operating Expenses, Total - - - -
Operating Income 747 749 612 454
Interest Income (Expense), Net Non-Operating -23 -21 -7 -9
Gain (Loss) on Sale of Assets - - - -
Other, Net -2 -1 -1 2
Net Income Before Taxes 722 727 604 447
Provision for Income Taxes 118 147 99 -78
Net Income After Taxes 604 580 505 525
Minority Interest - - - -
Equity In Affiliates - - - -
U.S GAAP Adjustment - - - -
Net Income Before Extraordinary Items 604 580 505 525
Total Extraordinary Items - - - -
Net Income 604 580 505 525
Total Adjustments to Net Income - - - -
Income Available to Common Excluding Extraordinary Items 604 580 505 525
Dilution Adjustment - - - -
Diluted Net Income 604 580 505 525
Diluted Weighted Average Shares 779 776 774 774
Diluted EPS Excluding Extraordinary Items 0.78 0.75 0.65 0.68
12