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To view this page ensure that Adobe Flash Player version 9.0.124 or greater is installed. ..Market Value Growth – In the financial world, market capitalization is a common metric used to assign value to a company. In effect, the market will determine a value for the com-pany by determining an appropriate price for a finite number of outstanding common shares. Our analysis defined any given year’s market capitalization as the calendar year ending stock price multiplied by the calendar year ending number of common shares outstanding. For this purpose, the following formula is used: Market Value = ($ Share price) x (# Common shares outstanding). ..Return on Equity (ROE) – The first term, return on equity, can be disaggregated into the following product of financial ratios: Return on Equity = Net Income / Average Total Share-holder Equity = Net Income / Sales x Revenue / Assets x Assets / Equity. Net income / Sales = net margin is a profitability measure. The second term, known as either asset efficiency or asset turnover, measures how well a company’s assets are performing their primary function – generating revenue.6 An aircraft is an asset that competes for capital like any other. There-fore, it should be theoretically possible to ascertain an association between operating aircraft and greater asset efficiency vis-à-vis nonusers. Note that sales is also a driver of shareholder value, through its association with asset efficiency. The final term is known as financial lever-age. It can be restated as [Debt / Equity] +1. This term captures the mix of debt and equity used to finance a company’s operations. We did not examine this component of ROE. 5 Five year results were used for all but a few cases in which incomplete financial information led to substitution of a four-year CAGR result. 6 We recognize that users account for their aircraft “assets” in different ways, some of which have a minimal impact on their balance sheet. Similarly, some companies own their manufacturing facilities while others lease them, which also impacts the composition of the balance sheet. How a company manages its assets is a strategic decision that impacts performance; therefore, we did not attempt to control for it (assuming we could do so). 中国公务机网 www.gongwuji.com 公务机翻译 www.aviation.cn 本文链接地址：BUSINESS AVIATION – AN ENTERPRISE VALUE PERSPECTIVE 2003 – 2009(23) |
