Financial Reporting and Analysis IBM Assignment

Financial Reporting and Analysis IBM - Assignment ExampleThe management of International Business Machines in like manner decided to narrow down their advertising agencies to one. This minimized cost and maximized the resources of the company and then an effective advertising which led to increment in sale of IBM products therefore increasing profits. The performance of the organization led to increase in price of shares which resulted to increase in return of equity and increase on number of investors (Garr, 2000). revenue enhancement change magnitude in the year nineteen ninety eight by four percent and slouchd in the succeeding(a) year by fifteen percent. Growth in revenue of a company indicates capacity in marketing and advertisement strategies. It is also an indication of increase in market share of products of the level (Hill & Jones, 2012). This can be caused by expansion in operations of the firm and diversification of its products. In the following year, there was a decline in revenue of the organization. The company reaching its maturity might nurse caused this and revenue started declining. In addition, the consumers of the company product might have changed preference for the product. This could be caused by an emergence of a similar product or reduction of price of the same product through rivals of the company. The decline in revenue could also be caused by changes in the economic conditions such as inflation. This would digest sales which in turn force prices of goods up leading to decline in sales hence decrease in revenue. Changes in technology could largely affect the revenue of the organization. The firm did not change to technology as expected by its customers hence led to decrease in revenue (Hill & Jones, 2012). perfect(a) margins on the other hand are profits made after the company deducts all the be or expenses made on sales which are referred to as gross sales. The gross margins have increased throughout the years for IBM C ompany as indicated in its