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In your position as research assistant to a portfolio manager, you need to analyze the profitability of the companies in the portfolio. Using the data
In your position as research assistant to a portfolio manager, you need to analyze the profitability of the companies in the portfolio. Using the data Oracle Corporation (NASDAQ: ORCL) below:
Fiscal Year | 2019 | 2018 | 2017 | 2016 | 2015 |
Total Revenue | 39506 | 39831 | 37728 | 37047 | 38226 |
Net Income | 11083 | 3825 | 9335 | 8901 | 9938 |
- Calculate the net profit margin for each year (Analysis 4 pts).
- Calculate the compound average annual growth rates (CAGR) for revenue and net income using the GEOMEAN function (Identify and Access Needed Information 4 pts).
- Calculate the average annual growth rate of total revenues using the AVERAGE function (Analysis 4 pts).
- Create a Column chart of total revenue and net income. Be sure to change the chart so that the x-axis labels contain the year numbers, and format the axis so that 2019 is on the far right side of the axis. (Use Information Effectively to Accomplish a Specific Purpose 4 pts).
- Interpretation: Please include your written description in the interpretation tab. If you do not complete this section with your words or leave the interpretation tab as a blank, you receive 0 point in this HW (Use Information Effectively to Accomplish a Specific Purpose 4 pts).
- Is net income growing more slowly or faster than total revenue? Is this a positive for your investment in the company? Please refer to your answer in b).
- Is this result more or less accurate than your result in the previous question? Why? Please refer to your answer in c).
Revenue - 39506 39831 37728 37047 38226
Net Income- 11083 3825 9335 8901 9938
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