Capital Expenditure

Capital Expenditure

This paper has discussed and compares the capital expenditure of two companies and analyzed that whether the amount of capital spending has been consistent or if it has fluctuated. Moreover this paper has highlighted the factors that has influenced by the capital expenditure. It also has been discussed that how capital expenditure can impact the efficiency or the profitability of an organization.

Harley Davidson

Harley Davidson is an American company involved in the manufacturing of motorcycles. The company faced an intense competition from Japanese competitors. This compels the company to strive towards excellence by heavy customization of bikes through stylish designs and performance. The company enjoys a significant brand name which is well renowned through the world. The issues and challenges faced by Harley Davidson during the great depression is exports. The business experienced turmoil in previous times which affected the profitability of the company. However, Harley Davidson did not suspend their operations. The company has a history of crisis which was eventually overcome with the passage of time and rose to fame by their promotional activities and unique propositions. Therefore, the company has considerable amount of recognition around the globe which is praised by public and target market(Cho & Patten, 2012). The company operations have compelled the company to expand aggressively and capture significant market share.

Polaris

Polaris Industries is concerned with the manufacturing of snowmobiles, ATV, and neighborhood electric vehicles. It is based in America with the well known reputation worldwide. The international approach of the company has made it more profitable. However, the company operations are expanded beyond these units. It is also involved in the manufacturing of motorcycles. The company faces competition from other motorcycle manufacturing companies. The strategies adopted by the company assist in expanding the business and avoiding the competition along with overcoming the issues and challenges. The common problems experienced by Polaris is the fluctuations in financial aspects. The company faced crisis during depression.

Comparative analysis is defined by two or more related economic indicators it contrast the difference between the identification of indicators and conduct gap analysis or trend analysis, which is a method of analysis. It is a basic, the most important methods of analysis. Comparisons are generally three basic expressions, the absolute comparison, percentages and ratios compare the comparison. Through comparative analysis, we can find gaps and determine the difference in the direction of the nature and size and to identify causes of the differences and their impact on the differences in order to further improve the company's management (Huszár & Peek, 2009). The actual results achieved with the different periods of the financial statements historical data of similar indicators compared to determine the company's financial position, operating conditions and cash flow trends and variation, revealing enterprise development potential for the company's financial decisions.

The use of comparative analysis, in order to check the plan or fixed on the completion of the period of the enterprise may be the actual plan or fixed targets and indicators compared; To examine corporate economic ...