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Pages:
2 pages/β‰ˆ550 words
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2 Sources
Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
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Topic:

The New York Times Company and Gannett Company Incorporation

Essay Instructions:

Present a synopsis of your analysis in an executive memo you would feel comfortable turning in to your
CEO. You may organize the memo as you see fit, but it must follow the principles of good business
communication. Be sure to include your recommendation to the CEO in your memo, preferably in the
opening paragraph and the summary.
key topics: The New York Times Company (NYSE: NYT) and Gannett Co., Inc. (NYSE: GCI)
1. Profitability/Net Income Margins
• What are the after-tax net income margins (i.e., net profit margins) for both companies?
• How do the two companies compare?
• Which company achieves the higher net income margin? Why?
Tip: Analyze the major cost structure line items in the income statement (COGS, SG&A,
restructuring costs, depreciation and amortization, impairment, interest expense (income),
etc.) as percentages of net sales so that you can identify reasons for better net income
margins. Identify and comment on the differences. You may not know why a particular cost
item like COGS is higher or lower, and that’s okay. Your CEO only wants to know which cost structure items are higher or lower for each company.
2. Debt Management
• Which company does a better job managing its long-term debt?
• What are their respective 3-year trends for long-term debt to equity? Total debt to equity?
• How can each company improve its use of long-term debt and equity capital?
3. Cash Is King
• How much net cash from operations did each company generate in the most recent
year?
• Which company has done a better job generating cash from operations?
• In layman's terms, how is each company spending their cash with respect to
reinvestments in the business, changes in debt, and returning money to shareholders?
4. Liquidity
• How do the companies compare in terms of the current ratio, and what are their
respective 3-year trends?
• Do their current ratios indicate that either of these companies could go bankrupt soon?
Explain.

Essay Sample Content Preview:

Annual Report Analysis: The New York Times Company (NYSE: NYT) and Gannett Co., Inc. (NYSE: GCI)
The following is a synopsis of the analysis between NYSE: NYT and NYSE: GCI. The New York Times Company (NYT) is a media conglomerate that owns newspapers, online ventures, and other holdings ("The New York Times," 2022). The New York Times (referred to as "The Times" in the company's one reportable segment) is a newspaper that also operates websites, including NYTimes.com, mobile applications, etc. On the other hand, we look at a provider of media and marketing solutions focusing on digital marketing, Gannett Co. Inc. The company is a Pulitzer Prize-winning content; customer experiences, perks, and advertisers are just a few of its goods and services ("Annual Reports," 2022). The headquarters of Gannett Co. Inc. is in Virginia, USA. My investment recommendation is on the Times, which has proved a pillar in the media industry and proved with the data provided below.
Profitability/Net Income Margins
For the past ten years, the New York Times (NYT) has reported its current and historical gross margin, operating margin, and net profit margin. As of June 30, 2022, the New York Times' net profit margin was 8.7 percent. Meanwhile, the gross margin, operating margin, and net profit margin figures for Gannett (GCI) for the previous ten years. As of June 30, 2022, Gannett's net profit margin was -2.06 percent ("Annual Reports," 2022). Therefore, it is evident that the Times has a higher profit margin than Gannet.
Operating income before depreciation and amortization (OIBDA) aims to demonstrate the revenue generated by a company's main activity. The Times's fair value was higher due to its better management of cost structures. The Times reduced expenses in running operations and long-term revenue projection projects. Gannet also reduced its structure cost and invested in real estate assets.
Debt Management
Long-term debt for the New York Times from 2010 through 2022. For the quarter ended June 30, 2022, the long-term debt of the New York Times was $M, a rise of NAN% over the previous year. The long-term debt of the New York Times was $0 billion i...
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