Business Analysis - Term Paper Example

Download file to see previous pages The paper "Business Analysis" is an amazing example of a Business term paper. This is a Business Analysis Report that is written on the negative relationship of dividend yield ratio and revenue, which is observed in the travel and leisure industry of the United Kingdom. The companies that are taken from this industry are Playtech PLC and GVC Holdings PLC. Playtech PLC was formed in 1999 and its aim is to produce the best gaming products. 

In the Isle of Man, its headquarters is located. To restrict the third party operators, GVC Holdings PLC offers its services in a business-to-business way. It has licenses in 14 countries.

When there is an increase in the Dividend Yield Ratio, often the company is concerned about its revenue projection. If Playtech PLC and GVC Holdings PLC are observed on an individual basis, then there is a positive relationship between these two variables, dividend yield ratio and revenue. However, if these two companies are observed by comparing their revenue and dividend yield ratio, then it is observed that there is a negative relationship between the two variables. This means that if one company has high revenue as compared to the other company, then its dividend yield ratio must be lower as compared to the other company.

To discuss and investigate this topic, six different analysis were used. The name of those analysis are ratio analysis, share price analysis, SWOT analysis, vertical analysis, horizontal analysis and trend analysis. The findings of this study identifies that which company is performing better. The recommendations are also given for the two companies, investors, lenders, debtors and other creditors.  Yet, the second situation gives a negative image of a company, because a drop in share price indicates that a company is facing some serious issues. This business analysis report is based on a similar situation, where the dividend yield ratio is showing a different behavior, when treated with different values of revenue.

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