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Showing posts with label Financial news. Show all posts
Showing posts with label Financial news. Show all posts

July 15, 2011

News Corp Numbers: What Lies Beneath

REBEKAH BROOKS resigned as chief executive of News Corporation on July 15th, taking the advice offered to her in this week's print edition. As the chart below shows, the challenge for News Corp now is to prevent the stink from phone hacking at the News of the World spreading to the parts of the business that make most of the company's money. For while Rupert Murdoch is a newspaper man first and a television and film mogul second, newspapers made up just 13% of the company's profits in the year to June 2010.

source :economist

April 30, 2011

Net Income: Apple Vs Microsoft

Apple's profits beat Microsoft for the first time in a very long time for the last quarter.
It's an amazing triumph for a company that was on the brink of death in 1997, and would have been a lost cause if not for the return of Steve Jobs and a $150 million investment from Microsoft.

When Steve Jobs announced that investment on stage a big Apple event, he said, "We have to let go of this notion that for Apple to win Microsoft has to lose."
It was a prophetic statement, as is evident in the chart below. Microsoft's profits aren't collapsing as Apple's rise. Microsoft's last quarter was one of its best.

MicroSoft Online Division is Bleeding

Microsoft just turned in strong earnings, but once again, there's a big ugly blotch on the report in the online division. Microsoft had a $726 million loss from online operations, the second biggest lost since March 2006.

Microsoft reported earnings for the March quarter (Q3 of its 2011 fiscal year)  and they were OK but not spectacular.Investors were expecting more of a blowout, and have sent the stock down about 1.5% after hours.

Revenue was $16.43 billion, slightly ahead of consensus estimates of $16.19 billion.
Windows sales were down about 4% -- in line with a PC unit sales drop of more than 3%. Some investors were expecting Microsoft to buck the PC sales trend like Intel did, but Intel's numbers didn't entirely reflect a decline in netbook sales. Microsoft says that netbooks are off 40% from last year.

Microsoft also said that expenses would be up 3% to 5% in its next fiscal year, which starts on July 1. That's probably because of a planned compensation increase that Microsoft explained to employees earlier this month. But that's a lot smaller increase than operating expenses at some competitors -- Google, for instance, announced opex expansion of 10% on its last earnings call.

February 25, 2011

US Consumers Spending : Trends and Insights

Each month, the Bureau of Labor Statistics gathers 84,000 prices in about 200 categories — like gasoline, bananas, dresses and garbage collection — to form the Consumer Price Index, one measure of inflation. It’s among the statistics that the Federal Reserve considered when it cut interest rates on Wednesday. The categories are weighted according to an estimate of what the average American spends, as shown below.

Source : Nytimes

An Average Consumer's Spending

Each shape below represents how much the average American spends in different categories.

Larger shapes make up a larger part of spendin

The average consumer has a budget that is split into a large number of monthly and yearly spending. The average consumer spends $49,638 a year on a range of necessary and desired expenditures. These expenditures come out of an annual household income of $63,091 per year on average, before taxes. The average consumer owns 1.9 vehicles, and 67 percent of them are homeowners with loans. Households average 2.5 people and 1.3 earners reside in each.

The largest expenditure of the average household is housing. This takes up an average 34.1 percent of the yearly budget of households.

The second largest expenditure for the average consumer is transportation. The cost of vehicles purchased is an average of $3,244 per year, making it 6.5 percent of the average budget.

Another large expenditure is healthcare. The average consumer spends $2,853 on healthcare each year. Another physical necessity, food, costs consumers an average of $6,133 per year. An average of $3,465 of that is spent on food that is consumed at home, and $2,668 of it is spent on food consumed away from home. Combines, the money spent on food is 12.4 percent of the entire yearly household budget.

Insurance and pensions are important financial considerations and they cost the average consumer $5,336 per year. This is a total of 10.8 percent of the annual budget. $5,027 f this, 10.1 percent of the yearly budget, is spent on social security and pension contributions. In addition, the average consumer pays an average of $309 each year, making up 0.6 of the annual budget.

Source :Visual Economics: