Zip Car Performance Analysis

PACCOUNTING AND FINANCIAL ANALYSIS Zipcar is expanding rapidly since it was established in 2000. According to its latest 8-k form, for the 2012 first quarter, revenue outgrowthd 20% to $59.1 zillion compared to $49.1 billion in the prior year period. Revenue growth gisted primarily from a 23% year-over-year increase in membership to to a greater extent than 709,000 members at quarter end. But does it really have a sustainable growth to support its expanding and operation? We implement a rough accounting and financial analysis to evaluate its action and forecast its future. Due to the high fleet cost and Selling, habitual and Administrative cost, Zipcar never achieved a net profit in its history. It had a net margin as (7.5%) in 2010 and (2.9%) in 2011, the trend is positive, showing the managements effort to increase the revenue and decrease expenses. For the effectiveness of utilizing the assets, Zipcar achieved its asset turnover invest as 7.0% in 2011, compared to 7.5% in 2010. This take trend wad also showed as Zipcars revenue per member went from $429 in 2009 to $392 in 2011. This may results from the average 20% growth prise of members, and most of the new members did not use the hourly service of process as much as the old members. For the leverage, it was 4.15 in 2010 and 1.

17 in2011, the result is positive, and showing that Zipcars strategy on decreasing financial backing cost on acquiring and maintaining the large scale of vehicles (Cut down on loan and acquire vehicles through Assets Backed Securities (ABS) Facility) has been working. For the heel counter of Equity, even though it is still negative as (2.4%) at the end of 2011, its loss on equity decreased nearly 90% from 23.3% in 2010. The investors may see it as a positive signal that Zipcar did its best to increase its profitability, and It implies a casualty that Zipcar may achieve other analyst estimated 2 million net incomes at the end of FY 2012. ESTIMATED GROWTH AND FORECAST Since Zipcars consequence business is providing... If you want to get a full essay, prescribe it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper