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VPMBA: Financial Analysis

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VPMBA: Financial Analysis
Financial Analysis

VPMBA: Financial Accounting and Reporting

Erica Miller

Dr. Sean Chen

Mercer University

March 22, 2013

Company Overview

In regards to prospective ventures, Georgia Power (GP) has been selected as the premier company for a future investment opportunity. According to their official website, GP is the largest subsidiary of Southern Company, one of the nation 's largest generators of electricity. The company is an investor-owned, tax-paying utility with rates below the national average. Created in 1902, the company was originally known as Georgia Railway and Power Company. With the merging of smaller utility companies and consolidations, Georgia Railway and Power
…show more content…
Therefore, it is worth examining the company’s internal expectations as it relates to the value of investment. In striving to make the most of shareholder value while providing cost-efficient energy, GP concentrates its efforts on several key indicators. These indicators include customer satisfaction, plant availability, system reliability, and net income after dividends on preferred and preference stock.

This information reflects that GP Met Expectations in 2008.

|Key Performance Indicator |2008 Target Performance |2008 Actual Performance |
|Customer Satisfaction |Top Quartile in Customer Surveys |Top Quartile in Customer Surveys |
|Peak Season EFOR – fossil/hydro |2.75% or less |0.84%
…show more content…
|Key Performance Indicator |2009 Target Performance |2009 Actual Performance |
|Customer Satisfaction |Top Quartile in Customer Surveys |Top Quartile in Customer Surveys |
|Peak Season EFOR – fossil/hydro |2.75% or less |1.43% |
|Peak Season EFOR – nuclear |2.75% or less |3.70% |
|Net Income |$856 million |$814 million |

GP is a good investment because the company, although large, is still flexible enough to maneuver its bad performance into a good performance. Good business decisions placed them in a position to Meet Expectations again in

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