- Impacted by constant change in the telecom industry, communication equipment vendors are experiencing declining profitability.
- Communication equipment manufacturers are focusing on cutting costs to maintain profitability. Despite telecom firms investing in high-speed networks and shutting down 2G and legacy networks, capital investments for equipment manufacturers have shrunk between FY 2011 and FY 2015.
- Unlike for communication equipment manufacturers, profit margins of electronic equipment manufacturers have been more stable, though this has not translated into increased returns to shareholders. Firms in this industry have been investing in capital expenditures, which has impacted these ratios.
- The cash conversion cycle has marginally increased for firms in the electronic equipment industry.
- Firms in both equipment segments have increased their leverage to take advantage of the prevailing low interest rate environment.
- To analyze the financials of public companies in the North American technology hardware and equipment industry.
- To rank companies based on their financial and risk management.
- To identify key trends and challenges that can impact the performance of industry participants over the
- Communication equipment
- Electronic equipment
Broad Group of Ratios Analysed
- Activity (turnover)
FY 2010–FY 2015
395 companies operating in North America
Who Will Benefit?
- Private equity firms
- Venture capital investors
- Fund managers
- Retail investors
- Sovereign wealth funds
- Hedge funds
- Insurance funds other members of the investing community
- Key Findings
- Research Objectives and Scope
4. Key Terms and Abbreviations
- Ratios Used for Analysis
- Key Trends—Communication Equipment
- Key Trends—Electronic Equipment
- Ratio Analysis—Communication Equipment
- Profitability Analysis—Communication Equipment
- Activity Ratios—Communication Equipment
- Liquidity Ratios—Communication Equipment
- Solvency Ratios—Communication Equipment
- Financial Benchmarking—Communication Equipment Top Performers
- Profitability Analysis—Electronic Equipment
- Activity Ratios—Electronic Equipment
- Liquidity Ratios—Electronic Equipment
- Solvency Ratios—Electronic Equipment
- Financial Benchmarking—Electronic Equipment Top Performers