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To view this page ensure that Adobe Flash Player version 9.0.124 or greater is installed. In defining the impact of business aviation on shareholder value, we identified the “drivers” of shareholder value in general, and then applied the methodology to our target companies. We performed a statistical analysis that demonstrated a linkage between a company’s financial performance and the value ascribed to it by investors. Total Shareholder Return Our analysis assumed that an investor made a hypothetical investment of $1 in each of the 385 companies on December 31, 2005. We then determined how much that basket of $1 investments was worth on December 31, 2009. We considered the appreciation of the stock price (on a split-adjusted basis), as well as the value of any dividends paid by the companies over that period. We assumed dividends were paid out on an annual basis, rather than retained as cash. Calculation: Total $ Shareholder Return = ($ Share Price) + ($ Dividends). As shown in Figure 6, the S&P SmallCap 600 companies using business aviation provided 245 percent more total return to shareholders (3.45 to 1.00) than did nonusers. The underlying drivers of shareholder value are revenue growth, profit growth, and asset efficiency. They provide the keys to interpret these outstanding results and are analyzed further in this report. Market Capitalization Growth In the investment community, market capitalization (“market cap”) is a common metric used to assign value to a company. In effect, the market will set the value for the company by determining an appropriate price for a single, outstanding common share. Our analysis defined any given year’s market cap as the calendar year ending stock price multiplied by the calendar year ending number of common shares outstanding. Calculation: Market Cap = ($ Share Price) x (# Common Shares Outstanding) Market cap growth is the change in market capitalization on a year-over-year basis. As shown in Figure 7, market cap growth was 11 percent higher for users of business aviation versus nonusers. This means that investors had greater faith in the future growth prospects of the SMEs that used business aviation. While it is unlikely that investors had a clear understanding of business aviation’s direct impact on company performance, their careful analysis of the drivers of value is assumed. 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 2005 - 2010(12) |
