Lanisha Cooks-Grier
Week 3 Assignment 2
10/31/2016
Professor Clark
- What are the two largest investing activities and financing activities for each firm?
Largest Investing Activities for 2015
3D Systems Corps (DDD)
Capital Expenditures (-907,000)
Net Assets from Acquisitions (-5.75M)
Toshiba Tech Corp (TSHTY)
Sale of Fixed Assets & Businesses (225M)
Sale/Maturity of Investments (167M)
Largest Financing Activities for 2015
3D Systems Corps
Sale of Common & Preferred Stock (135,000)
Other Proceeds from Sale of Stock (135,000)
Toshiba Tech Corp
Change in Current Debt (1.11B)
Other Sources (65M)
- Compare and contrast the investing and financing activities of the two companies.
Investing activities FY2015
3D Systems Corps | Toshiba Tech Corp | |
Net cash flows from investing activities | -6.66M | 392M |
3D Systems Corps has a negative value from investing activities while Toshiba has a positive value and spent more on investing activities (392M) than 3D systems (-6.66M).
Financing activities FY2015
3D Systems Corps | Toshiba Tech Corp | |
Net cash flows from financing activities | 270,000 | 1.175B |
Both companies have positive values of net cash from financing activities. However, Toshiba spent more on financing activities (1.175B) than 3D Systems (270,000).
- Evaluate the investing and financing strategies of the two firms? Provide a rationale for your opinion as to the effectiveness of each of the strategies.
I believe both companies have future expansion plans, although (DDD) has all negative cash flows doesn’t necessarily mean that’s a bad thing, it may be that they are investing in long-term fixed assets.. Their commitment to grow is seen through their investments as well as their acquisition of assets. (TSHTY) acquired assets amounting up to 1.175B in the fiscal year ended 2015, while (DDD) on the other hand invested only 270,000 in FY2015.
References
3D Systems Corp. (n.d.). Retrieved October 31, 2016, from http://insiders.morningstar.com/trading/insider-activity.action?t=DDD
Toshiba Tech Corp. (n.d.). Retrieved October 31, 2016, from http://insiders.morningstar.com/trading/insider-activity.action?t=DDD
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