Financial Reporting and Analysis IBM Assignment

Financial Reporting and Analysis IBM - Assignment ExampleThe management of International Business Machines also decided to narrow down their ad agencies to one. This minimized cost and maximized the resources of the play along hence an effective advertisement which take to increase in sale of IBM products therefore increasing profits. The performance of the organization led to increase in price of shares which resulted to increase in return of equity and increase on number of investors (Garr, 2000).Revenue increased in the year xix ninety eight by four percent and declined in the following year by fifteen percent. Growth in taxation of a company indicates efficiency in marketing and advertisement strategies. It is also an indication of increase in market share of products of the firm (Hill & Jones, 2012). This can be caused by intricacy in operations of the firm and diversification of its products. In the following year, there was a decline in revenue of the organization. The c ompany reaching its maturity powerfulness have caused this and revenue started declining. In addition, the consumers of the company product might have changed preference for the product. This could be caused by an emergence of a similar product or reduction of price of the same product through rivals of the company. The decline in revenue could also be caused by changes in the economic conditions such as inflation. This would reduce gross sales which in turn force prices of goods up leading to decline in sales hence decrease in revenue. Changes in engine room could largely affect the revenue of the organization. The firm did not change to technology as expected by its customers hence led to decrease in revenue (Hill & Jones, 2012).Gross margins on the other hand are profits made after the company deducts all the costs or expenses made on sales which are referred to as gross sales. The gross margins have increased throughout the years for IBM Company as indicated in its