Operating Activities Analysis Report by: Stephanie Jorge

Core Income

measure that excludes all nonrecurring and unusual items.

2016: $1,207.32 million

2015: $1,093.4 million (no restructuring adjustments)

2014: $1,207.22 million

Restructuring charges are due to LBF and GTI

Comprehensive Income

the final measure of income

2016: $957.3 million

2015: $810.1 million

2014: $1,267.0 million

Quality of Earnings

  • Sustainability of earnings

Operating vs. Non-Operating Sources of Income

Operating Income

  • operating sources

Decreased because:

Net sales in fiscal 2015 decreased from fiscal 2014, entirely driven by the negative impact of foreign currency translation of approximately $519 million.

Non-operating Sources

  • plant and equipment
  • goodwill and other intangible asset impairments
  • non-cash restructuring and other changes
  • interest income
  • loss of disposal

Permanent vs. Transitory Earnings

Permanent income (reoccurring income)

  • established cosmetic lines

Transitory earnings

  • earnings that occur once

Implications with projecting forecasts

  • customer's desires
  • technology

Credits:

Created with images by NikolayFrolochkin - "dollar money currency" • Moto@Club4AG - "And I thought guys were bad with car parts and accessories... MAC as in not trucks but cosmetics. $120 of crayons, water colors, and pencils!!! Lol." • ookikioo - "Bobbi Brown Stonewashed Nudes Palette" • ookikioo - "Clinique"

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