Cbs Corporation Financial Statement Analysis (2011)

Only available on StudyMode
  • Download(s) : 528
  • Published : March 9, 2013
Open Document
Text Preview
CBS CORPORATION:
FINANCIAL STATEMENT ANALYSIS
Using Form-10K (2011)
-------------------------------------------------
Prepared by: Marvin James Cho of 2FAC
Outline: 1. Business Analysis
2. Financial Statement Analysis (using Financial Ratios)
-------------------------------------------------
3. Horizontal and Vertical Financial Statement Analysis
-------------------------------------------------

1. Business Analysis

1.1 Company Overview
CBS Corporation is a mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world. The Company has businesses with origins that date back to the dawn of the broadcasting age as well as new ventures that operate on the leading edge of media. CBS owns the most-watched television network in the U.S. and one of the world’s largest libraries of entertainment content, making its brand – “the Eye” – one of the most recognized in business. The Company’s operations span virtually every field of media and entertainment, including cable, publishing, radio, local TV, film, outdoor advertising, and interactive and socially responsible media. CBS’s businesses include CBS Television Network, The CW (a joint venture between CBS Corporation and Warner Bros. Entertainment), Showtime Networks, CBS Sports Network, Smithsonian Networks, Simon & Schuster, CBS Television Stations, CBS Radio, CBS Outdoor, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Interactive, CBS Consumer Products, CBS Home Entertainment, CBS Films and CBS EcoMedia. (Source: http://www.cbscorporation.com/ourcompany.php?id=11)

1.2 Corporate Governance
NameTitle
Leslie MoonvesChief Executive Officer
David PoltrackPresident
Adam TownsendVice President, Investors Relations
Sumner RedstoneExecutive Chairman
Shari RedstoneVice Chairman
(Source: http://en.wikipedia.org/wiki/CBS_Corporation#The_CW)

2. Financial Statement Analysis (using Financial Ratios)

2.1 Liquidity of the Company
Based from the Annual Report of 2011, submitted in the form of 10-K. The following data used in computing the liquidity of CBS Corporation from 2010 to 2011 are as follows: | 2010| 2011|
Current Assets| $5,395| $5,543|
Current Liabilities| 4,026| 3,933|
Inventories| 751| 735|

(Source: Form 10-K, Balance Sheet Section)

Liquidity Ratios:
CBS Corporation -- 2011 (expressed in millions)
Working Capital: $5,543 – $3,933 = $1,610
Current Ratio: $5,543 / $3,933 = 1.41x
Quick/Acid-Test Ratio: ($5,543-735) / $3,933 = 1.22x

CBS Corporation -- 2010 (expressed in millions)
Working Capital: $5,395 – $4,026 = $1,369
Current Ratio: $5,395 / $4,026 = 1.34x
Quick/Acid-Test Ratio: ($5,395-751) / $4,026 = 1.15x

2.2 Asset Management of the Company
Based from the Annual Report of 2011, submitted in the form of 10-K. The following data used in computing the asset management or efficiency of CBS Corporation from 2010 to 2011 is as follows: | 2010| 2011|

Accounts Receivable| $3,248| $3,254|
Inventories| 751| 735|
Total Assets| 26,143| 26,197|
Fixed Assets (Net)| 2,694| 2,510|

(Source: Form 10-K, Balance Sheet)
| 2010| 2011|
Sales| $14,060| $14,245|
Cost of Sales| 8,969| 8,354|

(Source: Form 10-K, Income Statement)

Asset Management Ratios:

CBS Corporation -- 2011 (expressed in millions)
Inventory Turnover: $8354 / [($735+751)/2] = 11.24x
Days Sales Outstanding: $3254 / ($14245/365days) = 83.38 days Fixed Assets Turnover: $14245 / [($2510+2694)/2] = 5.47x
Total Assets Turnover: $14245 / [($26197+26143)/2] = 54.43%

CBS Corporation -- 2010 (expressed in millions)
Inventory Turnover: $8969 / [($735+751)/2] = 12.07x
Days Sales Outstanding: $3248 / ($14060/365days) = 84.32 days Fixed Assets Turnover: $14060 / [($2510+2694)/2] = 5.40x
Total...
tracking img