Capital Budgeting

Capital Budgeting

Overview of Alaska Airlines, Inc

Alaska Airlines, Inc. was established in 1932. It is well known for its customer services. It serves more than sixteen million customers annually. It's mainly destinations are Alaska and west coast. Apart from its main destination it also serves Midwest cities, East coast and Texas; it also flies to four Islands. It serves more than ninety destinations in the United States, Mexico and Canada (phx.corporate-ir.net)

Overview of Ebay Inc.

EBay Inc. is the world's leader in ecommerce. It provides more than hundred millions of its customers the facility of online purchasing, selling and paying online. It is the world's largest online market place. It provides the services of buying and selling of almost everything online. EBay was established in 1995. It provides the opportunity to the small businesses and individual people who want to do buying and selling either directly to the customers or to the business. In 2011 EBay records the total value of buying and selling on it was $68.6 billion, which means at EBay users do $2100 transaction every second (investor.ebayinc.com).

Overview of Clorox

Clorox is the company which has leading brands that has became household names such as home cleaning products, home care products, cat litter, charcoal, dressing and sauces and products like data filtration. The company does production in over two dozen countries and sells its product in more than 100 countries across the world. The symbol of the company in New York stock Exchange is CLX (investors.thecloroxcompany.com)

The numbers are in thousands. Total current assets of EBay reported on its (annual report of 2011) is 12,661,454 and long-term assets are 2, 452,763 of EBay. The total current liability of the firm is 6,734,204 where as the long- term liabilities of EBay are 1,525,047. The Revenue of EBay is 1,651,654. (investor.ebayinc.com). For Alaska Air Group Inc. the numbers are in millions. Total current assets of Alaska Air Group Inc. reported on its (annual report of 2011) are 1,596 and long-term assets are 3,402 of Alaska Air Group Inc. The total current liability of the firm is 1,509.6 where as the long- term liabilities of Alaska Air Group Inc. are 1,099 The Revenue of Alaska Air Group Inc. is 4,318 (phx.corporate-ir.net). For Clorox Company the financials are in millions. Total current assets of Clorox Company reported on its (annual report of 2011) are 1,279 and long-term assets are 1,039 of Clorox Company The total current liability of the firm is 1,365 where as the long- term liabilities of Clorox Company are 2,125 The Revenue of Clorox Company is 5,231 (www.thecloroxcompany.com).

Ratio Analysis

It is used to analyze the financial position of the firm. It indicates the performance of the firm as well. The data given in the financial reports of the company is used in calculating the ratios of that company. Profitability ratios analyze the performance of the firm's in making profit.

Ratios of Alaska Airlines, Inc

Profitability ratio

Net profit margin

6%

return on Assets

5%

Operating income margin

10%

Return on Investment

9%

Return on Equity

21%

Gross profit margin

10%

Net profit margin of the Alaska Airlines ...