Moo Earnings wrote a post · Sep 2, 2022 16:58

Earnings Challenge E1｜Who wins for the Market Cap?

Event Description:

By holding the Earnings Challenge event, we hope it will help mooers to discover more about the differences among companies and industries. Meanwhile, we can easily learn and review the key financial indicators here to facilitate our investment.

"In the business world, the rear-view mirror is always clearer than the windshield. If a business does well, the stock eventually follows." -- Warren Buffett

Challenge Start:

Rewards

1) 4000 points giveaways: The first 100 users who give below correct answers of Question 1 and Question 2 will receive an equal share of 4,000 points. (e.g. if 100 users win, each user will receive 40 points.)

2) Cash Coupons: 3 users who give the best-quality comments on the below companies, including your investment idea, trading experience, or the exploration of Market Cap deviation reasons among the companies will get US$2 / SG$2.8 cash coupons.

Questions

1) From the information in Pictures 1-3, can you guess which companies they are for Companies A-C?

2) Combining with companies' Net Income information, can you guess which company's Market Capitalization is larger, similar or smaller currently?

e.g. The answer: A>B>C or A<B<C or C<A≈B (within 10% deviation), etc.

Picture 1: Company A

Company A operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services. In 2019, company's turnover was US$7.66 billion, ranking 40th on the Fortune 500 list. In 2020, it ranked 121st in the " Fortune 500 " list.

Picture 2: Company B

The company B has three divisions: Commercial Aircraft, Defense and Space, and Helicopters, the third being the largest in its industry in terms of revenues and turbine helicopter deliveries. As of 2019, it is the world's largest airliner manufacturer. The 'SE' in its corporate name means it is a Societas Europaea, which enables it to be registered as a European rather than a national corporation.

Picture 3: Company C

The American company was founded in 1908 and is headquartered in Detroit, Michigan. It designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. Further, the company provides automotive financing and insurance services; and software-enabled services and subscriptions.

How to attend this event?

Add the stock tickers (e.g. $Tesla(TSLA.US)$) of your answers below with the Market Cap comparison, and related investment ideas if you have.

Event Duration: September 2- September 11

Earnings Wiki:

1）What's the Market Capitalization?

Market Capitalization (Market Cap) refers to the total stock value of a listed company's total shares calculated at market prices. The investment community usually uses this figure to determine a company's size or value instead of the total asset or sales figure.

● Common Formula: Market Cap = Total shares × Price per share

2）Revenue, Gross Profit and Net Income

Revenue is the amount of income generated from the sale of a company's goods and services.

Gross profit helps investors determine how much profit a company earns from producing or selling its goods or services.

Net Income is the profit that remains after all expenses and costs have been subtracted from revenue. Net income helps investors determine a company's overall profitability, which reflects how effectively a company has been managed.

● Common Formula: Net income =Revenue - Cost of Goods Sold - Operating Expenses - Taxes - Interest

Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.

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