Financial Health Of The Organization

Financial Health Of The Organization

As a company, DTV Direct TV Consumer Discretionary’s ability to meet both short and long term financial obligations forms an integral part when it comes to the maintenance and growth of the company in future. The company has increased its revenue over the years from 27.2B-29.7B.The goods sold between 2009and 2012 in dollars are 2009 -10, 930, 2010 -12, 105, 2011-13,955 and 2012-15,579 (Bloomberg, 2013).This clearly shows that the sales are going up. If the company is not in a position to put its finances to check then it is destined to fail. Therefore it is important to make an assessment of the overall financial health of DTV DirecTV Consumer Discretionary’s to ensure that it is healthy when it comes to finances and hence can sustain itself.

There are several measures of financial health in the organization such as sales and profit margins. In recent years the sales of the organization have been on an upward trend. There are no indications of the sales gong down anytime soon. This is a good sign showing that the company is doing well financially. Consequently the profit margins are also seen to be rising. It is only logical that an increase in sales comes with and increase in profit margins. This means that the operational costs of the company are generally low and with the rise in sales results to an increased profit margin. The gross profit margins are 49.409% against and operational cost of 14.32% which means that the company is doing ell in terms of profits (Markovich, Heim, Hammond &Hammon, 2010). This is also a good sign when it comes to the financial health. This can mean that the profits can be ploughed in back to the business and the business can expand

References

Markovich,P., Heim,J., Hammond ,J.& Hammon,J.(2010). DIRECTV, Inc. [DTV]

Bloomberg..(2013).DIRECTV (DTV:NASDAQ GS). BloombergBusinessweek Retrieved march 25,2013 from http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=DTV