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To view this page ensure that Adobe Flash Player version 9.0.124 or greater is installed. As mentioned earlier, Standard & Poor’s categorizes companies on the basis of market capitalization. Our analysis of the S&P SmallCap 600 companies over the period 2005 through 2009 found that two of the three companies that “graduated” from the S&P SmallCap 600 index to the S&P 500 index operated business aircraft. We further examined companies that graduated from the S&P Smallcap 600 to the S&P MidCap 400 index and found 15 examples of business aviation users that made this impressive transition. Return on Equity (ROE) Outside investors contribute equity capital in exchange for an ownership stake in the company and provide another important resource to grow operational capacity. Companies are judged on their ability to produce returns on this investment equity and that ability is a key metric to attract new capital. Return on equity tells common shareholders how effectively their money is being deployed. Comparing ROE over time reveals trends. Further comparisons with industry composites reveal how well a company is holding its own against competitors. Calculating return on equity is straightforward: Return on Equity = Net Income / Common Equity As shown in Figure 8, SMEs using business aviation collectively realized 40 percent greater return on equity than nonusers (1.4 to 1.0). Translated, this means that more net income was produced for a given unit of common equity by companies that used business aviation. Revenue Growth An analysis of “top line” revenue growth indicates a company’s ability to grow, and more importantly, grow faster than a competitor. Revenue growth generally comes from organic growth and from strategic acquisitions and business alliances. The ability to get in front of new customers can mean winning market share from a competitor, while the ability to respond to customer needs can contribute to customer retention. The result is revenue growth. Revenue growth is a good measure of a company’s potential to sustain earnings, and when combined with factors such as asset efficiency, indicates a corporate philosophy of strong re-investment into the company’s core and most profitable businesses. 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(13) |
