No. of Recommendations: 2
Morning everyone:
Following is a RMR that I did for NTAP switching, basically switching EMC as competition. As you can see they don't make meet the criteria.

Network Appliance Inc.				 	 	 		

NTAP SUNW IBM EMC
In Thousands In Thousands Year-over-Year In Thousands In Thousands In Thousands
4/30/00 4/30/99 Growth 6/30/00 12/31/99 12/31/99
Income Statement
Sales 579,300 289,420 100.2% 15,721,000 87,548,000 6,715,610
Cost of Goods Sold 235,846 118,120 99.7% 7,549,000 55,619,000 3,258,245
Net Income 73,792 35,613 107.2% 1,854,000 7,712,000 1,010,570
Shares Outstanding 299,370 273,740 9.4%

Balance Sheet
Cash & Equivalents 353,491 580,575 -39.1% 2,475,000 25,870,000 1,824,139
Current Assets 533,000 315,346 69.0% 6,877,000 43,155,000 4,320,396
Short-term Debt 0 0 No Debt 7,000 14,230,000 9,116
Current Liabilities 113,433 50,530 124.5% 4,759,000 39,578,000 1,397,915
Long-term Debt 54 93 -41.9% 1,720,000 14,124,000 686,609

Cash Flow Statement
Operating Cash Flow 118,080 45,947 157.0% 3,754,000 10,111,000 1,371,635
Capital Expenditures 40,819 15,474 163.8% 1,051,000 5,959,000 524,279
1 1 1
Margins & Ratios . . . Competitors' Average
Gross Margins 59.3% 59.2% 0.1 52.0% 36.5% 51.5% 46.6%
Net Margins 12.7% 12.3% 0.4 11.8% 8.8% 15.0% 11.9%
Cash-to-Debt 6546.13 6242.74 4.9% 1.43 0.91 2.62 0.98
Net Cash 353437.0 580482.0 -39.1% 748000.0 -2484000.0 1128414.0 -202528.7
Fool Flow Ratio 1.58 -5.25 -130.1% 0.93 0.68 1.80 1.14
Cash King Margin 13.3% 10.5% 2.8 17.2% 4.7% 12.6% 11.5%


Continue Here

Ranking Rule Makers

1) Brand Points (0-1) 3) Financial Direction Points (0-3)
Familiarity 1 Sales Growth 3
Openness 1 Gross Margins 3
Optimism 1 Net Margins 3
Legitimacy 1 Shares Outstanding 0
Inevitability 1 Cash-to-Debt 2
Solitariness 1 Fool Flow Ratio 3
Humor 0 Expansion Potential 3
Subtotal 6 Subtotal 17

2) Financial Location Points (0-2) 4) Monopoly Status Points (0-4)
Mass Market Habit 1 Gross Margins 4
Gross Margins 1 Net Margins 2
Net Margins 2 Net Cash 4
Cash-to-Debt 2 Fool Flow Ratio 0
Fool Flow Ratio 0 Convenience 4
Your Interest 2 Subtotal 14
Subtotal 8
5) Your Enjoyment 1

Total Score 46 Second Tier

Buying Criteria:
1. Dominant brand 0
2. Repeat purchase business 0
3. Convenience 1
4. Expanding possibilities 1
5. Rule Maker Ranking = 46 1
6. Sales Growth 2
7. Gross Margins 2
8. Net Profit margins 0
9. Cash 1 (some long term debt)
10. Flow Ratio 0
11. Cash King Margin 1

Total 9


Anyone have any suggestions for other companies to look at!

Deb Brown
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement