CONCLUSIONS/RECOMMENDATIONS Draw conclusions from the data that was gathered in the previous...

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CONCLUSIONS/RECOMMENDATIONS    Draw conclusions from the data that was gathered in the previous sections and determine the relevant position of each of the corporations in all of the analyses. The conclusions/recommendations must address the following as a comparison between  the two companies. The thoughtfulness of the analysis will be the most important factor in the evaluation of this section.    1. What are the overall strengths and weaknesses of each corporation?    2. What recommendation would you make to current and potential private or organizational investors in the two corporations?    3. What recommendation would you make to lenders regarding the credit-worthiness of the corporations?    4. Position, salary and benefits being equal, which company would you prefer to work for?
	
Document Preview: Norfolk Southern Corporation & Union Pacific CorporationFinancial Statement Analysis Project2013Syed Zaidi, Sanjana Varkhade, XXXXXXXXXXAna Velasquez, Thibault Vigier, XXXXXXXXXXSumit Widhani, Brittanie Walter,      Oguzhan TuranNorfolk Southern Corporation & Union Pacific Corporation3/29/2013FINANCIAL STATEMENT ANALYSIS PROJECT FALL 2013SECTION 1: EXECUTIVE SUMMARY	1.1 COMPANY ADDRESSNorfolk Southern Corp.                                   XXXXXXXXXXUnion Pacific Corporation.Three Commercial Place                                     XXXXXXXXXX1400 Douglas StreetNorfolk, VA 23510                                             XXXXXXXXXXOmaha, NE 68179United States -  HYPERLINK "http://us.rd.yahoo.com/finance/profile/map/*http:/maps.yahoo.com/maps_result?addr=Three%20Commercial%20Place&csz=Norfolk%20VA%2023510&country=United%20States" Map                                            XXXXXXXXXXUnited States -  HYPERLINK "http://us.rd.yahoo.com/finance/profile/map/*http:/maps.yahoo.com/maps_result?addr=1400%20Douglas%20Street&csz=Omaha%20NE%2068179&country=United%20States" MapPhone: XXXXXXXXXX 				 XXXXXXXXXXPhone: XXXXXXXXXXFax: XXXXXXXXXX                                             XXXXXXXXXXFax: XXXXXXXXXXWebsite:  HYPERLINK "http://www.nscorp.com/" http://www.nscorp.com                       XXXXXXXXXXWebsite:  HYPERLINK "http://www.up.com/" http://www.up.com1.2 COMPANY INFORMATION1.2.1 Exchange: NYSE                                     XXXXXXXXXXExchange: NYSE1.2.2 Stock: Norfolk Southern Corp.                XXXXXXXXXXStock: Union Pacific Corporation1.2.3 Stock symbol: NSC                                 XXXXXXXXXXStock symbol: UNP1.2.4 Industry: Railroads                                 XXXXXXXXXXIndustry: Railroads1.2.5 Employees: 30,943  			 XXXXXXXXXXEmployees: 45,9281.2.6 Fiscal Year Ends: Dec 30             ...

Robert · Accepted Answer

1. What are the overall strengths and weaknesses of each corporation?
UNION PACIFIC RAILROAD  
Strengths of the company include an increase in revenues as well as increase in gross 
profit. It has maintained a robust and consistent increase in net income. This could be 
a result of increase in sales as well as decrease in operating expenses. Relative 
increase in 2012 vs 2011 is lesser than the increase in 2011 vs 2010. On the weak 
part, the costs have increased with respect to 2010, especially the costs of goods sold. 
Ir has experienced a 5% increase in costs in excess of revenues since 2010. If that 
trend continues their expenses will outweigh their revenues creating more losses.
NORFOLK SOUTHERN RAILROAD 
The company has maintained a profit percentage around 36% in the past three years 
which gives it a stable outlook. Cash ratio shows that company has a good liquidity 
position, which is important for everyday operations. The weakness faced by the 
company is that it has seen a drop in sales in 2012. Also, it has a fluctuating net 
income as seen from the past 3 years financial statements. The company believes the 
fall in 2012 comes as a decline in volumes of utility coal which will be offset in 2013 
and the company is expected to bounce back with higher positive impact on revenues. 
The growth has been more or less stagnant for Norfolk and it has added more debt 
expense.
2.

CONCLUSIONS/RECOMMENDATIONS Draw conclusions from the data that was gathered in the previous sections and determine the relevant position of each of the corporations in all of the analyses. The...

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