McGraw-Hill Financial Performance

It is reported that there was an 8.6% plus in the earnings per share to $2.40 for the grade 2006 that due to the growth in the revenue by 4.2% amounting to $6.3 billion. Another successful category for the McGraw-Hill, but before that, lets take a mien on the past few years where the evaluation on this research must focus.The net income of the McGraw-Hill for the year 2003 is $687.7 meg. During 2004, the net income had reached to an amount of $755.8 million, a 9.9% increase from the front year. In step-up to this, the companys revenue increased by 7.4% amounting to $5.3 billion.In accordance with the Emerging Issues Task Force Issue 00-10, Accounting for exile and Handling Fees Costs, the corporation had do reclassification of the revenues resulting to an increase in the revenue of $62.5 million and $62.5 million during the year 2004 and 2003 respectively.There is an increased of 14.3% in the McGraw-Hill revenue during 2005 which had reached close to $6 billion. Together w ith it is the increase in the net income of 11.7% reaching to an amount of $844.3 million and in any case an increase in the earnings per share of 12.8%. The company had also handed an amount greater than $924 million to the shareholders prior to the increase of 14.4% compared to as before of 4.9%.Pearson PLC Financial PerformanceIn the year 2003, changes in the companys portfolios had made revenue to increase by 89 million and 24 million on the profit. However, due to the movements of currency, there is 181 million reduction on the revenues and 27 million on the profits.During the year 2004, the revenues of the Pearson PLC had decreased by 302 million and 51 million on the profits due to the currency movements that happened that time. However, the changes in the portfolio had made an increase of 41 million on the revenues but still the profit dropped down by 8 million.However, the movements of the currency in 2005 had made a positive effect on the Pearson PLC. Regarding the conti nuing business basis, there is an increase in the sails by 46 million and the profit had also increased by 12 million. In addition to this, the portfolio changes also made the gross sales to increase by 29 million and profits by 9 million.Also during the year 2005, the fastest growth of sales happened in comparison on the past five years of the corporation. The sales increased by 9%. There is also a 22% increase in the profit amounting to 509 million and with the margins sledding up to 12.4%. There is also an increase of more(prenominal) than 33% in the operating cash flow of Pearson and more than 50% on the free cash flow, reaching to an amount of 431 million.These results to the most cash generated in Pearson that ever happened before. The biggest contributor on these success is the education- having sale of up to 12% generating an amount of 2.66 billion and making the profit to go up by 22% to the amount of 348 million.McGraw-Hill Stock PerformanceA 10% increase was authorise by the Board of Directors of the McGraw-Hill Companies on the Corporations common parenthood regular quarterly cash dividend. It was the 32nd of the consecutive increase in the annual dividend of the Corporations common stock.In 2004, an amount of $630 million was returned by the McGraw-Hill Companies to their shareholder. There was a 50% increase on the dividend payments compared to the previous year (2003). There is a new annualized rate amounting to $1.32 per share brought by the Corporations increase by 3 cents to 33 cents per share in the regularly quarterly dividend on the common stock. There was a history of continued increase in the McGraw-Hill dividends for 32 consecutive years. Also, during this year, the acquisition of the 5 million shares of its purchase range happened on the Corporation.There was an increase of a 10.3% average on the McGraw-Hill Companies annualized total return over the past 5 years.In 2005, the expanded stock repurchase program continued for 45 mi llion shares which is far greater than the outlook of the Corporation on 2004 of between trio to five million shares. In addition to this, it has been a 33 consecutive years of an increase in the dividend. Since 1974, a 10.3% had been the average compound annual growth rate.Pearson Stock PerformanceThe shareholders had approved the amount of 17 pence per ordinary share as a final dividend in 2005 and the he total dividend had reached the amount of 27 pence (adding the already paid meanwhile dividend). There is an increase from the previous year dividend from 25.4 pence (2004).In 2004, an adjustment of up to 5% amounting to 30 pence (57.6 cents) per share occurred and also there was an increase on the dividends by 5%.In 2003, a dividend per share amounts to 24.2 pence or 43.3 cents. The expense of the share at this year is 5.72 and 6.25 on the following year (2004) and on 2005, the share price is 6.52.Stock Performance AnalysisIn 2004, the stock performance of the McGraw-Hill dram atically increased from 17.8% of return putting it on its peak having a record liberal a 32.9% in return to the shareholders. However, it has not been good during the year 2005 due to the currency movement thus dropping down to 14.4%. However, it was a disaster for Pearson PLCs stock to be performing to the down low having its percent of return down to its lowest return of 1.5%. The stock performance trend from 2003 until 2005 has been continuously going down. Currency movement and the changed company portfolio didnt make a resistance for the company at these times.Long-Term CommitmentUntil 2005, McGraw-Hill Companies had succeeded and made the constant average return on investments through dividends of 10.3% for 33 consecutive years since 1974. By simply looking at these numbers, the possibility of McGraw-Hill to a long-term commitment would bring up more success to the Corporation.Pearson had been facing trouble in their past years before 2003. Those years have been tough for the Corporation. But their claim is they had made three of their companies, namely education, business information and consumer publishing to becoming world leaders.These happenings made them to think of two things making their operations efficient and selling of better products and run compared to their competitors. This strategy made them sold more than 250 million worth of products and services through combining of two or more parts of Pearson, both working(a) together. The results of this had reduced costs, increased revenues, assets, and working capitals that will continue planning on a long-term commitment.McGraw-Hill. (2007). The McGraw-Hill Companies, Inc. Financial Statement. Retrieved certify 10, 2007, from http//moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=MHP&lstStatement=Balance&stmtView=AnnPLC, P. (2007). Financial Statement. Retrieved March 10, 2007, from http//finance.google.com/finance?fstype=ci&cid=664805