Stocks and bonds are the sources of dividends in the long term when income is generated by paying interest or returning invested funds when owning the relevant securities. In their financial statements, companies reflect stock and bond performance when comparing the results for a particular period with those of an earlier period and making forecasts regarding the growth of potential earnings. By evaluating the financial statements of individual large corporations, the characteristics of securities management can be analyzed, and conclusions can be drawn concerning future stock impacts.
One of the globally known companies, whose profit largely depends on the stability of securities and their demand in the financial market, is Apple. According to the corporate financial report, for the 2022 second quarter, the share of stock dividends per share increased by $0.23, which indicates a 5% increase in the parameter (Apple Inc., 2022). In March 2022, common stock was about $61.2 million, while in September 2021, the figure was $57.3 million (Apple Inc., 2022). The repurchases of common stock remained almost unchanged at $43.1 million (Apple Inc., 2022). The securities management policy is an important aspect of Apple’s activities because, traditionally, the company is considered one of the most profitable global brands to invest in and gain profits.
Another influential participant in the securities market is the American travel company Expedia Group. By generating income through the combined activities of a number of subsidiaries, the company pursues an open shareholder policy. According to the latest financial statement, in 2021, the indicator of Expedia’s preferred stock dividend was $67 million, which was lower than the previous year by $8 million (Expedia Group, 2022). The treasury stock in 2021 was $10.2 million, which was slightly higher than the 2021 parameter, and the total stakeholders’ equity was $3.5 million (Expedia Group, 2022). Tough times for tourism in recent years due to the COVID-19 pandemic explain weak equity capital growth.
FedEx, the American logistics company providing postal and courier services, has been in the target market for many years. Based on its latest financial statement, the common stock share in 2021 remained the same as in 2020 – $32 million (FedEx, 2022). At the same time, investor activity increased significantly in 2021 compared to the previous year. This can also be explained by the current COVID-19 pandemic and restrictions on direct social contacts, which have increased the demand for postal services. In 2021, the indicator of total stakeholders’ investment was $82.7 million, while in 2020, this parameter was almost $10 million lower (FedEx, 2022). As a result, one can talk about the effective use of stock resources for conducting FedEx’s shareholder policy.
Based on the reviewed financial reports of the three companies, one can note that their equity policies are flexible, as evidenced by fluctuations in investment activities and changes in dividend shares. External factors play an essential role in the construction of a stock management system, and the examples of FedEx and Expedia Group confirm the direct relationship between the situation in the world and the stability of securities. The impact of the COVID-19 pandemic has turned out to be massive, and in light of global restrictions, these companies’ services have become more in demand, which directly correlates with investor activities (Duralia, 2021). With regard to Apple, this corporation has always been appreciated highly among shareholders, and in view of the company’s stable market growth and the interest of the target market in its products, its shares are unlikely to fall in price. Thus, the analysis of the aforementioned financial statements has made it possible to single out the characteristic features of the corporations’ equity asset management policies and identify the corresponding investment dynamics.
References
Apple Inc. (2022). Condensed consolidated statements of operations (unaudited). Web.
Duralia, O. (2021). Changes in brand-related consumer loyalty in the current pandemic context. Studies in Business & Economics, 16(1), 68-80. Web.
Expedia Group. (2022). 2021 annual report. Web.
FedEx. (2022). 2021 annual report. Web.