OVERALL EVALUATION

Overall Evaluation



Overall Evaluation

Company Introduction

CBS Corporation is a media conglomerate with television, radio, and outdoor advertising assets. The main enterprises within CBS' entertainment segment are its television production studios and national broadcast network. We think the television production studio is the most attractive business within this segment, given its history of hit programs such as its "CSI" and "NCIS" drama series, and the multiple revenue streams that its content generates. While most programs are not hits, the successful programs can be monetized in several ways after their original airing, including syndication to cable networks and home video sales.

Financial Analysis

Financial Position

CBS Corporation has consistently been able to report substantial growth in its net sales due to innovative service launches. The current year shows overall growth in financial performance and through profitability and liquidity standards. The performance is increasing since last three years and expected to increase in near future.

Profitability Ratios

If we look at the CBS Corporation results we observe that the company's return on asset ratio increased to 0.027 in current year from -0.345 in the last two years. Similarly the return on equity ratio also increases to 0.077 in the current year from -0.77 two years before. The profit margin slightly increases to 5% from 2% in the last year. The results of CBS Corporation show that the earning per share ratio of the company is increasing with a high proportion in the laast three years, which is a very good signal for the shareholders. Shareholders can feel secure for their investments and can expect a good return from their shares.

Liquidity Ratios

Current Ratio

This is used to indicate the amount of current asset which are available to meet the current liabilities as at when they fall due. CBS Corporation's current ratio is good and in increasing trend ...