Financial Analysis of John Deere - 1080 Words

Assignment 1: Financial Analysis of John Deere David Schwendinger Strayer University Financial Accounting for Managers Acc 556 Dr. James Turkvant May 11, 2015 Assignment 1: Financial Analysis of John Deere In this paper I will provide analysis of the annual report provided by the company. I will specifically looking at this report from an investor’s prospective, attempting to ascertain whether John Deere is managing its finances in manner that will draw investors. Other, non-financial, aspects of John Deere will also be considered that could be used as decision points for potential backers. This will also be considered in the larger context of the construction and farm machinery industry and some of John Deere’s competitors.†¦show more content†¦This shows a different picture as the total assets increase over current assets by about $15 Billion dollars and the total liabilities increase over current liabilities by $31 Billion. (Deere Company, 2014, p. 32) This shows a debt to assets ratio of 85%. This level of debt could make a prospective investor very leery. This is countered the John Deere’s times interest earned at 5.4. While this number is no t great, it is not terrible either. If it were lower, that combined with the debt to asset ratio would be a very large warning flag. Determining whether to invest in John Deere or not is not a simple decision as the numbers do not point to a clear answer. They also are only one point of analysis when looking at the industry or the stock market as a whole. John Deere is ranked second in its industry, behind Caterpillar. (Fortune, 2014) This may to seem to indicate that investing in Caterpillar would be a better decision but while John Deere’s sales were only up 4.5%, Caterpillar’s were down 15.5% from the previous year. (Fortune, 2014) Navistar International Corp is another competitor that has been struggling with the current state of the Industrial Equipment industry. They have seen their stock price drop by about a third in the last year. (Navistar International Corp (NAV:New York), 2015) Now does this mean that an investment in John Deere is a wise one? Considering the reduction inShow MoreRelatedStatus Report – Bu 2799 Business Management Capstone Project1216 Words   |  5 Page s(18598631) Dr. Mitchell ITT Technical Institute 23 February 2016 Status Report John Deere (Deere Company) Company Background and Business Model The items that I have completed for the Business Management Capstone Project as of February 23, 2016, include many components. First, I have included the name of the business that I will be discussing for the project. The name of the company that I will be discussing is John Deere. The company was founded almost 200 years ago (In 1837) in Moline, IL. TheRead MoreCaterpillar, Inc. Financial Analysis1743 Words   |  7 Pagesï ¿ ¼Caterpillar, Inc. Financial Analysis ï ¿ ¼Ã¯ ¿ ¼Andrew Hutson, John Beckman, Patrick Gregory, Marquese Martin-Hayes 25 September 2014 CATERPILLAR, INC: FINANCIAL ANALYSIS 1 Company Summary Caterpillar is a machinery manufacturing company headquartered in Peoria, Illinois. Established in 1925, Caterpillar has become the largest domestic manufacturer of construction, mining and agricultural machinery. After becoming a leader in each of those three industries domestically, Caterpillar has branched out intoRead MoreExpanding Deeres Construction Segement to China Essays1293 Words   |  6 Pages Deere and its customers share many of the same risks. Poor weather conditions or crop prices can threaten farmers’ net income, in turn hampering Deere’s farm equipment sales. Although farmers tend to gravitate toward smaller, regional banks, and other credit crises as seen in late 2008 could impede equipment buyer’s ability to finance new machinery. A recent endeavor to expand the construction segment in China also presents risk, as the region is home to more established players, both domestic andRead MoreJohn Deere947 Words   |  4 PagesScott Hedrick March 19, 2012 1. History of John Deere â€Å"Deere amp; Company began when John Deere, born in Rutland, Vermont, USA on February 7, 1804, moved to Grand Detour, Illinois in 1836 in order to escape bankruptcy in Vermont. Already an established blacksmith, Deere opened a 1,378 square feet shop in Grand Detour in 1837 which allowed him to serve as a general repairman in the village, as well as a manufacturer of small tools such as pitchforks and shovels. What was more successfulRead MoreGlobal Market For Agricultural And Construction Equipment1033 Words   |  5 Pagesthe competitive forces confronting Deere in the global market for agricultural and construction equipment? Do a five-forces analysis and identify the key driving forces and key success factors to support your answer. After looking into the Balance sheet and financial charts for each top 4 rivals company who are almost dominating the current agriculture equipment manufacturing are not very strong compared to Deer Company. The five forces are: Supplier power. Deere managed to keep its other competitorsRead MoreJohn Deere Essays2192 Words   |  9 PagesBusiness Analysis on Deere Company McKenzie R. Mayfield Tarleton State University Dr. Nathan Heller October 31, 2015 Author Note I attest that this document is an original creation submitted in accordance with the requirement for the Comprehensive Written Project (CWP) in Seminar in Business Strategy (GB-5388) during the Fall 2015 academic term. Abstract This document provides an in depth company analysis of Deere Company (DE). In the first segment of the analysis, an overview of John Deere’sRead MoreJohn Deer Case Study1238 Words   |  5 PagesMohamud Hassan DSC434 John Deere case study Due date 11/11/14 Early Supplier Integration in the Design of the Skid-Steer Loader Scott has been offered a new position as supply management manager for a new Deere amp; Company manufacturing facility of designed product skid-steer loader. As part of his new job, he must make a proposal to identify specific suppliers to integrate into skid-steer loader development process and specific ways to effectively integrate these suppliers in order toRead Moreexecutive Summary-John Deere3676 Words   |  12 Pagesï » ¿ Executive Summary John Deere is an iconic one hundred and seventy-seven year old company and maker of agricultural machinery headquartered in Moline, Illinois. What started as a small business operation has sprung into a multibillion-dollar global operation. In 2013 alone, the company boasted sales of $37.80 billion. Founded in 1837 by a blacksmith, the company originally only built plows, and did not assemble their first tractor until they purchased a small tractor company, WaterlooRead MoreGlobal Market For Agricultural And Construction Equipment1175 Words   |  5 Pages1. How strong are the competitive forces confronting Deere in the global market for agricultural and construction equipment? Do a five-forces analysis and identify the key driving forces and key success factors to support your answer. Deer company sits on the top of the market share ranking at 34.5 % competing with 1000 other companies worldwide in the tractor and agricultural equipment industry where CNH industry comes next at 11.7 % of market share. The top four; Deer Company, CNH industryRead MoreHow Strong Are The Competitive Forces Confronting Deere Case Study1286 Words   |  6 PagesHow strong are the competitive forces confronting Deere in the global market for agricultural and construction equipment? Do a five-force analysis and identify the key driving forces and key success factors to support your answer. The five forces are: Supplier power. Deere managed to keep its other competitors from driving up the price because of suppliers pricing by building its own supply channels. In each of its six identified key regions Deere established manufacturing plants that supported its