• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

BUSINESS SUMMARY Reed Elsevier plc

Extracts from this document...

Introduction

BUSINESS SUMMARY Reed Elsevier plc (formerly Reed International) operates publishing and information business through its 50% interest in Reed Elsevier Group plc. The company's activities include science and medical, legal, education and business publishing. Its principal operations are in North America and Europe. Reed Elsevier plc holds a 39% interest in Reed Elsevier Finance BV, with Reed Elsevier NV holding a 61% interest. The company's business provides products and services that are organized to serve four business sectors: * Elsevier serves the science and medical sector * Lexis Nexis, the legal sector * Harcourt Education, the education sector * Reed Business, the business-to-business sector. On June 30, 2004, Harcourt Education acquired Saxon Publishers, a publisher of skill based instructional material for pre-kindergarten through high school students in mathematics, phonics and early childhood learning. Share Performance Price (pence): 5.50 52 Week High: 5.67 Volume (millions) 8.7 52 Week Low: 4.61 Currency: GBP FINANCIAL SUMMARY For the six months ended 30 June 2005, Reed Elsevier Plc's revenue decreased 27% to 72M. ...read more.

Middle

A ratio of 1.00 means the company's long-term debt and equity are equal. The Total Debt/Equity Ratio includes long-term debt and short term debt. Profitability Dec'02 Dec'03 Dec'04 3 Year Average Gross Margin (%) 22.33 23.65 23.84 23.27 Operating Margin (%) 9.60 13.67 14.10 12.46 Net Profit Margin (%) 3.35 6.49 5.97 5.27 23.8 23.3 22.8 22.3 21.8 Dec'02 Dec'03 Dec'04 3 year Average Gross Profit (%) These ratios summarize overall profitability, or the bottom line Gross margin (%) 23.84(%) Gross profit x 100 607.00 x 100 Revenue 2,546.00 Gross margin shows the amount of revenue left over after deducting direct cost of producing the goods or services. Operating profit and operating margin trace the progress revenue down to another important level. From gross profit we now subtract, indirect costs, often referred to as overhead e.g. facilities and salaries associated with headquarters operations. Finally profit margin revenue dollar is left over all costs, of any kind are, subtracted. These other costs include such items as interest on debt and income taxes. ...read more.

Conclusion

A low payout ratio indicates that company has chosen to reinvest most of the profit back into the business. Per share data Dec'02 Dec'03 Dec'04 3 Year Ave Earnings Per Share 0.7 0.13 0.12 0.36 Sales Per Share 2.09 2.06 2.00 0.02 Book Value 1.10 1.02 0.95 (0.08) Cash Flow 0.29 0.32 0.29 0.04 0.134 0.112 0.091 0.070 0.049 Dec'02 Dec'03 Dec'04 The most important Per-share data item is Earnings per share. That's because ultimately, the price of your stock is related in some way to the value of the stream of earnings attributable to that share. Earnings Per Share 0.12 Adjusted income available to common shareholders 152.00 Diluted Weighted Average Shares 1,273.10 This section also includes the amount of Cash Per Share the company had at the time of its most recent quarterly or annual report. Most of the time, this number will be far below the stock price. In a healthy industrial company, a Cash Per Share figure that is close the stock price might suggest that investors are underestimating the worth of the company's ongoing business, thereby creating an interesting investment opportunities for you. ?? ?? ?? ?? REL REED ELSEVIER PLC (LONDON STOCK EXCHANGE) 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Btec National Business Level 3 Year 1 - Exploring Business Activity

    Quickly plan and execute personalized campaigns across all communication channels, including direct sales, call centres, e-mail, fax, and the Internet. A single campaign window consolidates all the information and functionality they need. Microsoft helps to optimize their sales and marketing activities to control cost and increase effectiveness.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    struggle to fit in either with such a regime or fit in around it. Tesco also need to think about how they would be viewed by customers in the UK if they did not give staff in other countries the same benefits they have in this country.

  1. Introduction to J Sainsbury plc

    Sainsbury's Organisational Functions Sainsbury's produce their products and services and have to carry out a range of functions. These include the following: > Finance and Accounts - the finance and accounts department at Sainsbury's is run by a chief accountant and is responsible for supervising the accounts and finance department.

  2. Barclays Investigating a Business

    With unemployment low the economic conditions remain good and benefit Barclays immensely as there is a better cash flow throughout the country. Competition An Oligopoly is when a number of businesses specialise in the same market. Barclays in an Oligopoly as there are many banks competing to provide the same services such as savings accounts, retail management and loans.

  1. Introduction to Business Assignment

    good perception about them and will hold high beliefs about them and will continuously continue to buy off of GE lighting in bulk. With companies endlessly buying off of GE lighting, their sales and profits should inflate and they will achieve growth.

  2. This is a detailed business report on Sainbsurys.

    The constraints of franchising are that sometimes it may not reach to the expectations that it should. What I generally mean by this is that the service has to be up to a certain standard of top quality and if it does not reach or obtain to this level then

  1. Departments and their roles within a business.

    For example, if the finance department and marketing department lack communication skills, the finance department may add up and calculate the costs incorrectly. The marketing department should double check their costs and confers with the finance department, ensuring that the correct figures are taken and calculated.

  2. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    Asda specialises in retails food, clothing, general merchandise, toys and financial services. Like Tesco?s it also has a mobile telephone network called Asda Mobile, and they have a petrol service. Sainsbury?s is another rivalling supermarket chain (3rd largest supermarket in the UK)

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work