Based on a practical example the role of financial planning is analyzed. In a first step the financial situation of KLA-Tencor Corporation was reviewed using public available data of last year’s financial statements and press releases. In a second step the data was discussed in comparison to industry peers and financial ratios were calculated. Long term financial planning approaches were reviewed and planning models were discussed. In a last step a “percentage of sales” model was applied to develop
a potential scenario for KLA-Tencor Corp. over the next 4 years until 2012 based on forecasts of market research institutes. The assignment ends with potential conclusions how KLA-Tencor could
use its financial strength for a rapid growth over the next years.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- PROBLEM DEFINITION
- OBJECTIVES
- METHODOLOGY
- THE ROLE OF FINANCIAL PLANNING
- FINANCIAL SITUATION OF KLA-TENCOR CORPORATION
- NET WORKING CAPITAL AND CASH FLOW
- FINANCIAL RATIOS
- LONG TERM FINANCIAL PLANNING AND GROWTH
- FINANCIAL PLANNING MODELS
- AN EXAMPLE FOR FINANCIAL PLANNING
- CONCLUSIONS
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment aims to analyze the role of financial planning in supporting management in validating potential investment decisions. The study focuses on KLA-Tencor Corporation, a metrology supplier for the semiconductor industry, utilizing publicly available data.
- Understanding the financial situation of KLA-Tencor Corporation
- Evaluating financial ratios and their implications for investment decisions
- Exploring long-term financial planning approaches and models
- Developing a potential scenario for KLA-Tencor Corporation using a "percentage of sales" model
- Analyzing the potential for rapid growth based on KLA-Tencor's financial strength
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction lays out the importance of financial planning in navigating industry cycles and making investment decisions. It emphasizes the need for a solid framework of financial models to respond to changing market dynamics and underscores the limitations of financial planning.
The problem definition section explores the dangers of relying solely on financial models and highlights the need for thorough investigation of investment options. It emphasizes how financial planning can help reveal the short and long-term implications of different investment strategies.
The methodology chapter outlines the practical approach taken in the study, involving a comprehensive analysis of KLA-Tencor's financial situation, a comparison with industry peers, and the development of a scenario for the next four years.
The chapter on "The Role of Financial Planning" delves into KLA-Tencor's financial situation, examining its balance sheet and key financial ratios. It explores the impact of acquisitions and debt financing on the company's financial profile.
Schlüsselwörter (Keywords)
The main keywords and focus topics of the work include financial planning, investment decisions, industry cycles, financial modeling, financial ratios, long-term financial planning, scenario analysis, and the semiconductor industry.
- Quote paper
- Christian Kuhne (Author), 2009, The role of financial planning in making investment decisions, Munich, GRIN Verlag, https://www.grin.com/document/137738
