The Case of Pulte Group, Inc Study Example | Topics and Well Written Essays - 3000 words

The of Pulte Group, Inc - Case Study Example This paper analyzes Pulte Group as a case study of company analysis. The study is divided in two phases. First, an understanding of the company’s business, strategies and industry is presented to show relation of activities to its spending. Second part is a ratio analysis to understand the relationship of ratios from previous years for internal trends and ratios of other firms for external trends for comparison. The importance of a financial analysis nowadays cannot be discounted because of its contributions to decision-making. As a guide to interested stakeholders, an Analysis of Pulte Group, Inc. is being done for the purpose of reviewing trends of financial performance of the company to find if there its strategies are consistent with their spending; and to know if the company measures up with competition. Comparing the company with competitors will give light as to the standing of the company. As this company is a publicly listed company, shareholders of the company are interested to know status of the company because of their personal interests of investments. Credit institutions and suppliers are likewise paying attention to its credibility due to risks involved in doing business with the company. Finally, the government, as the controller of institutions concerned with the implementations of SEC rules of submission of its annual Report, has to check compliance. The Analysis reviews company strategies in the first part of the study; then ratios are calculated for internal and external trends. Data used come from published Annual Report of the company, and published analysis of experts. Sources of financial information are the Financial Statements of the company published in Morning Star (2013) and Pulte’s Annual Report for 2011. Advice of Lermack, H.(2003) a professor in Philadelphia University in conducting financial analysis, was consulted in this study and used it as guide for comments. Background of the company Pulte Group is one of the largest homebuilders in the U.S. It was incorporated in 1987 and is a listed company in the stock exchange. Its strategies are divided into two operations: the homebuilding and financial services. Company operates in 3 brands: the Pulte Group Homes, Centex, and Del Webb. In homebuilding operations, strategies used are offering of single-family detached, townhouses, condominiums, and duplexes at di fferent prices, options and amenities to its customers. Customers are segmented as to as to entry-level, move-up, and active level. Company also acquires land for construction of homes for sale to homebuyers. It employs realty as it sells parcel of land to third parties for development. In order to attract prospects, company advertises, use brochures, and displays. It has opened a website to facilitate views of products, sites, negotiations, and information. For financial operations, company has own financial services that include mortgage and title operations through Pulte Mortgage and other subsidiaries. As an originator of mortgages, it uses its own funds and borrowings in mortgage and title