Introduction to Finance Coursework Example | Topics and Well Written Essays - 2000 words

Introduction to Finance - Coursework Example The business has significant operations in the US and in recent years it has meaningfully extended its operations to Africa, Asia and South America. In addition, it has expanded its operations in Europe (BBA Aviation website). The following are the reasons for considering an investment in BBA Aviation equity. Firstly, the company’s revenues have remained relatively stable (flat). It has grown its net income from $110.6M in 2013 to $138.5 million in 2013, a pattern that will continue in the future. Secondly, the company has generated positive cash flows, and it is likely to continue generating cash flow. Finally, the company is rich with tangible assets, primarily in the form of property, plant and equipment that total $0.557 billion (BBA Aviation financial statements). According to Michael Bow, a reporter at City A.M. this provides an excellent hedge against the risk of inflationary effects of the monetary policies of the Bank of England. AstraZeneca Plc is a global biopharmaceutical firm that discovers manufactures and sells prescription medicine for areas such as neuroscience, cardiovascular, infection, oncology, gastrointestinal, and respiratory and inflammation (AstraZeneca Plc website). The company continues to grow despite the difficult financial situation because it operates a range of marketing, production and R&D facilities worldwide. The company’s long term sales grow at a rate more than 7 percent while its earnings per share is growing at an average rate of 19.9%. The company again possesses a strong balance sheet with a total of $10.013 billion in cash and short term investment. It has a long term debt of only $ 8,588 million (Financial times). The cash flows of the company are constant because the demand for medicine is always stable as many customers need to repeat-purchase. The company’s new management has ended its share buyback programme and focused on acquiring companies