Essay about Coffee Supply, Demand and Price Elasticity

Coffee Supply, Demand, and Price Elasticity Team B: Walelia Naholowa’a, Priscilla Swanson, Delniece Williams, Nigel Sturge ECO/212 Robert Coates February 26, 2012 Coffee Supply, Demand, and Price of Elasticity Statistics show that over half of the American population consumes coffee on a daily basis. You may drink coffee hot, cold, mixed, or even in a frappuccino. Individuals are able to make coffee at home, or buy it on the go. Coffee provides people with caffeine, which ultimately gives energy for hardworking people all around the world. The main focus for this paper will cover the following topics, with coffee as the basis: causes for shifts in supply and demand, how coffee supply and demand influence price, quantity,†¦show more content†¦Changes in the equilibrium price and quantity depend on exactly how the curves shift (Berkeley University, n.d.). How supply and demand influence price, quantity, and market equilibrium These shifts in supply and demand would influence price, quantity, and market equilibrium because of the natural disasters, shift in prices or speculation the supply of coffee decreases, which would cause a significant product shortage for consumers. Due to a shortage, consumers would to pay higher prices in order to purchase coffee and all coffee producers would then demand a higher price in order to produce more products. Higher prices are beneficial to the producers of the product, but consumer would purchase fewer products. Lower product pricing would discourage coffee production, but would benefit consumers. Both supply and demand would balance consumption, which is demand and production, which is supply. Market speculation would also drive the price of coffee up or down. For instance a study issued by the Harvard medical school in August 2004 states that â€Å"coffee consumed in moderation is safe and offers health benefits such as lowering the risk of gallstones and type two diabetes, and reduced cancer risk for women.† This speculation because of the health benefits publish may drive the market price of coffee.Show MoreRelatedSupply, Demand and Price Elasticity of Coffee1001 Words   |  5 Pagesoften have is: where is the coffee? The price of coffee fluctuates no matter what quantity is sold. The following paper will discuss what makes the price of coffee rise and what consumers do when the price is more than they are willing to pay. Many factors are taken into consideration when the price of coffee is being determined. The main two factors are the supply that is demanded and the availability of substitutes, which will be discussed below. Coffee is a commodity enjoyed allRead MoreThe Supply And Demand Curve951 Words   |  4 PagesA shift on the supply and demand curve will subsequently effect pricing, an example of this is the increase of coffee supply in 1998. Using data collected by the ICO, it is found that supply of coffee increased from 99,550 (in thousand 60 kg bags) in 1997/8 to 108,858 (in thousand 60 kg bags) in 1998/9. This can be explained due to an increase in suppliers with the addition of Yemen, Guyana and Loa, this will affect total production by increasing coffee producing countries, whilst simultaneouslyRead MoreDemand Curve, Supply Curve Equilibrium. The Demand Curve995 Words   |  4 PagesDemand Curve, Supply Curve Equilibrium The demand curve can be shown in a graph and it reflects the relationship between the price and amount of a commodity that people are able and willing to buy at a set price. The demand curve slopes downward because are more prone to buying a good as the price declines. For example, coffee drinkers may be willing to buy more cups of Starbucks coffee if a medium cup of regular coffee sells for $1.49 versus $2.10. Instead of buying one cup a day they may buyRead MorePrice Elasticity and Supply Demand Price Elasticity and Supply Demand1382 Words   |  6 PagesAssociate Level Material Appendix B Price Elasticity and Supply Demand Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity Event Market affected by event Shift in supply, demand, or both. Explain your answer. Change in equilibrium Frozen orangeRead MoreMarket Trends And Demand For Coffee Essay1398 Words   |  6 Pagesindividuals consume 66 percent of the world s coffee and spend half of their nonessential income on fast food, and specialty coffees. Thus, according to the Specialty Coffee Association of America reported, that the retail sales in coffee reached 17,400 in 2003 which was an increase of 4 percent more than in 2002. Thus, the market for specialty â€Å"coffee grew from $7.53 billion in 1999 to $8.96 billion in 2003† (Holmes, 2012). Even the gross revenue of specialty coffee rose from 9 percent in 2000 to 16 percentRead MoreThe Global Coffee Market: Demand and Supply Conditions911 Words   |  4 PagesBackground Coffee has long been one of the most sought-after commodities. Spreading north from Ethiopia and Yemen, coffee first gained popularity in the Arab world as a stimulant drug that was not banned in the Quran. It arrived in Europe via the Ottoman Empire and quickly became a drug of choice not just in Europe but in the area that the European cultures colonized. Production of coffee soon spread around the world, particularly in regions colonized by the French and Spanish. As a result, itRead MoreThe Price Of Coffee Prices1551 Words   |  7 Pagesthat determine the supply of the products and detail the future outlook of the supply curve. To ensure compliance with Starbuck’s rigorous coffee standards, Starbuck’s controls coffee purchasing, roasting, and packaging, and the global distribution of coffee used in their operations. Starbuck’s purchases green coffee beans from multiple coffee-producing regions around the world and custom roasts them. The price of coffee is subject to significant volatility. Supply and price can be affected byRead MoreCoffee Consumption in USA1265 Words   |  5 PagesSynopsis National coffee drinking trends statistics in 2012 shows a tremendous increase in the consumption of coffee in the country. The data show a general increase in all demographics consumption behaviors. Significant increase is in age groups 18 to 39 with the largest jump in consumption observed in gourmet coffee. The data from the national coffee association (NCA) show current behaviors of coffee consumption such as single cup brewing taking the lead in coffee taking style. Data collectionRead MoreHomework Ecn 2111655 Words   |  7 Pages Assume the demand for watermelons is downward sloping. A decrease in price from $3 per pound to $2 per pound [A] could have been caused by an increase in supply. [B] will cause an increase in supply. [C] will cause a smaller quantity of watermelons to be demanded. [D] will cause demand to decrease. [E] will cause demand to increase. 5. If the equilibrium price decreases and the equilibrium output decreases then what must have happened. A) Demand increased B)Read MoreStarbucks : A Global Coffee Company930 Words   |  4 Pagesglobal coffee company and coffeehouse chain based in Seattle, Washington since 1971. It is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with almost 21,366 stores in 63 countries. A recent survey says that in last 30 days 32 million people visited the store across the globe. Thus, it is a highly busy and in demand coffee shop. Here I am going to do microanalysis of Starbucks as a largest coffeehouse chain/industry in the world considering its demand and supply in the

Etiology of Pediatric Obesity - 776 Words

Fast food, as an aspect of our cultural identity, alone, cannot be responsible for the epidemic of childhood obesity in the United States, as the behavior of children is largely reliant on the influences of their parents. Home and social environments, parenting styles, family-feeding practices are the primary influences on early childhood nutritional behaviors. Obesity is a serious and widespread health problem in only certain kinds of societies characterized by economic modernizations, food surplus, and social acceptance. GENETICS During adiposity, around 5 to 6 years of age, a child’s body fatness declines to a minimum before increasing into adulthood. A study conducted at Group Health Cooperative of Puget Sound found evidence of normal weight children with at least one overweight parent at the time of adiposity rebound, is nearly 5 times as likely to be obese as an adult. However, if both parents are obese before the child reaches adiposity rebound, there is 13 times the risk of the child becoming an obese adult. Generally recognized as genetic predispositions, the causes of excess adiopsity may affect a variety of possible physiological processes, including basal metabolic rates. Individuals with â€Å"fat phenotypes† are likely to develop adult obesity but genetic inheritance does not cause obesity alone (Whitiker). PARENTING These obese parents are creating specific food environments for their children containing high fat, high-calorie, energy dense foods. High fat foodsShow MoreRelatedDr. Robert H Lustig Is A Professor Of Pediatrics In The874 Words   |  4 Pages Dr. Robert H Lustig is a professor of pediatrics in the division of endocrinology, in the California University. He lives in San Francisco with his with his family. He is also a director of the weight assessment for the teen and child health program. He has basic clinical training on the development of hypothalamic, function and anatomy. He worked St. Jude children’s research hospital in Memphis. He has explored the roles of fructose as a mediator of chronic diseases and continued consumptionRead More Health Risks and Obesity Essay1397 Words   |  6 PagesObesity has become the silent killer in American society. It is a risk factor for numerous chronic diseases including the four leading causes of death. Obesity can be li nked to stroke, heart disease, cancer and diabetes, all serious health problems that can be fatal. Obesity is linked to 300,000 deaths annually in the industrial world (Flamholz, 2001). Often in society and in the medical community there exists a lack of understanding that obesity is in fact a disease and needs attention, otherwiseRead MoreNon-Alcoholic Fatty Liver Disease1779 Words   |  8 Pagesthe next decade. This chronic disease is obesity. Along with the rise of obesity among youth, there is a new silent killer linked to childhood obesity. This new chronic disease, typically found in alcoholics, is now becoming prevalent in obese children and is called non-alcoholic fatty liver disease (NAFLD). NAFLD is defined as a liver disease in people who have not consumed alcohol in significant amounts to cause liver damage, and in whom no other etiology for fatty liver is present (Prashant, 2007Read MoreBeing A Physician Since My Childhood755 Words   |  4 Pagesand clinical course of various diseases. Working with underserved population, heart breaking sadness, deaths and miracles made me more compassionate, interactive, humane and empathetic. Almost 38-40 % of world’s population comprises of infant and pediatrics and my country is not an exception. Poor and false belief toward immunization, hygiene, improper diet and unhealthy life style made a large section for infectious disease and other chronic morbidities. During my internship at my hometown I startedRead MoreChildhood Obesity : A Growing Problem1378 Words   |  6 PagesDid you know that obesity has become such a ‘growing’ quandary that for the first time ever today’s children are expected to have a life expectancy that is shorter than their parents (Gance-Cleveland, Gilbert, Kopanos, Gilbert, 2009, p. 72)? Obesity in children and adolescents has become a worldwide epidemic, increasing every year. In fact, childhood obesity in the United States (US) has increased to 17%, which has nearly tripled the prevalence of obesity in the last three decades (Center forRead MoreAdvances and Advocacy in the Treatment of Acute Ischemic Stroke3088 Wo rds   |  12 Pagesdiscussed with respect to their results regarding the increase in incidence of stroke in young adults of different age groups. Agrawal, Nidhi; Johnston, S. Claiborne; Wu, Yvonne W.; Sidney, Stephen; Fullerton, Heather, J. Imaging Data Reveal a Higher Pediatric Stroke Incidence Than Prior US Estimates. Stroke. 17 September 2009. American Heart Association, Inc. 29 April 2011. . This paper is important as it discusses the incidence and risk factors of stroke in children and newborns. The significanceRead MoreChildhood Obesity And Its Effect On The Health Of Human Beings Essay1354 Words   |  6 PagesRunning head: CHILDHOOD OBESITY​​1 Childhood Obesity Name: Institution: Date:  Childhood Obesity Introduction Obesity is unusual or excessive fat accumulation that affects the health of human beings. It is connected with disorders such as hypertension and diabetes. Obesity is also a state of imbalance between energy intake and expenditure. Moreover, genetics plays a greater role in the etiology of obesity with the tendency of increasing weight easily until it exceeds 10% than recommendedRead MoreSocial Determinants of Childhood Obesity Essay example1265 Words   |  6 PagesChildhood obesity fast becoming a worldwide epidemic, and according to the Bureau of Statistics (cited in Browne 2012, p.20), 23 per cent of children are overweight or obese in Australia. Browne (2012, p.20) suggests that by children being weighed regularly by their doctor, just as they were when they were babies and toddlers, it will help doctors and parents to closely monitor their weight. Although obesity is caused by an imbalance of the calories consumed with the output of energy through metabolismRead MoreThe Field Of Psychosocial Epidemiology Essay1369 Words   |  6 Pagesvariables associated with a chronic health condition. Obesity is a chronic health condition characterized by presence of excess of body fat. Obesity is measured by using Body Mass Index (BMI) in children 2 years of age and older. The BMI is calculated by the body weight (in kilograms) divided by the height squared in meters. In adults, a BMI between 25 and 30 kg/m2 is regarded as overweight and a BMI greater or equal to 30 kg/m2 is regarded as obese. Obesity in adults is subcategorized as class I (BMI ≠¥30Read MoreEtiology And Treatment Of Pediatric Medulloblastoma2013 Words   |  9 PagesEtiology and Treatment of Pediatric Medulloblastoma The three most common malignant pediatric tumors include retinoblastoma, gliablastoma, and medulloblastoma (Wechsler-Reya Scott, 2001). Medulloblastoma is a rapidly growing tumor found in the cerebellum; the part of the brain responsible for posture, balance, and complex motor functions such as swallowing and speech (American Brain Tumor Association [ABTA], 2014). There are five different types of medulloblastoma; classic, large-cell, desmoplastic

The Theme of Love in A Midsummer Nights Dream by William...

The Theme of Love in A Midsummer Nights Dream by William Shakespeare When love is in attendance it brings care, faith, affection and intimacy. This is proved true in the spectacular play A Midsummer Nights Dream written by William Shakespeare. This play displays the facts about lust, hatred, jealousy and their roles in something powerfully desirable. It is entitled love. Love is present everywhere, in every form, in every condition and even when one least expects it. True love is like a precious black pearl, it is so rare that many believe it to be a myth, but Hermia and Lysander found true love according to the following excerpt said by Lysander from A Midsummer Nights Dream. ...The†¦show more content†¦It is part of the human nature to love and be loved by a friend, a relative, or a partner. Separating the love in siblinghood and friendship is hard for people that have known each other all their lives, just as Helena justified when she asked Hermia why she deserved being mocked, trying to prod Hermia into feeling guilty. ...Sisters vows...school days friendship...our needles created both one flower...so we grew together...like a double cherry...in union in partition...one heart...our ancient love... (3.2.202-218) The friendship between Hermia and Helena were so close that it was identical to sisterhood except the fact that they did not share the same blood. The love of friendship is one of those types that no one can live without; it is as essential to life as water is. Love surrounds everyone, but when one loses the love of one they also loved, it comes as a shocking unbelievable incident, and sometimes so shocking that it is similar to a bad dream. Times like these are tough, that is when one needs the love and support that family and friends can offer. Loving one that loves one back is an easy task to accomplish, but loving them without them loving one back is a degrading, embarrassing task and only the bold, courageous, and madly in love people would do such things. The following passage was extractedShow MoreRelatedThe Theme of Love in A Midsummer Nights Dream by William Shakespeare1563 Words   |  7 PagesThe Theme of Love in A Midsummer Nights Dream by William Shakespeare In A Midsummer Nights Dream, Shakespeare presents us with multiple types of love by using numerous couples in various different situations. For example: Doting loves, the love induced by Oberons potion and in some aspects, Lysander and Hermias love for each other; there are true loves: Oberon and Titania, Lysander and Hermia (for the first half at least, as Lysanders love switches to Helena temporarily)Read MoreThe Theme of Love in A Midsummer Night’s Dream by William Shakespeare894 Words   |  4 PagesThe Theme of Love in A Midsummer Night’s Dream by William Shakespeare In the play ‘A Midsummer Night’s Dream’ many aspects of love are explored. In this essay I will be exploring how Shakespeare conveys the theme of love including illusion, confusion, escape, harmony and lust. Historically, it has been suggested that ‘A Midsummer Night’s Dream’ was written for a wedding, signifying the importance of love in this play, however there is no real evidence to prove thisRead MoreThe Theme of True Love in A Midsummer Nights Dream by William Shakespeare744 Words   |  3 PagesThe Theme of True Love in A Midsummer Nights Dream by William Shakespeare The overriding theme of the play A Midsummer Nights Dream by William Shakespeare deals with the nature of love. Though true love seems to be held up as an ideal, false love is mostly what we are shown. Underneath his frantic comedy, Shakespeare seems to be asking the questions all lovers ask in the midst of their confusion: How do we know when love is real? How can we trust ourselves that love is real when we areRead MoreWeathering the Storms of True Love1159 Words   |  5 Pagestrue love hugging and kissing as the moon smiles down upon them, seems like the perfect situation for true love. Unfortunately, nothing could be further from the truth. Shakespeare presents the truth about true love in his comical tragedy A Midsummer Nights Dream. Lysander clearly stated loves situation when he told Hermia the course of true love never did run smooth (Griffiths 94). In some ways Lysanders declaration becomes the plays structural and thematic point by which Shakespeare usesRead MoreWillia m Shakespeare s A Midsummer Night s Dream1474 Words   |  6 Pagesinstance, one could look at the movies A Midsummer Night’s Dream and Shakespeare in Love. The latter follows the life of William Shakespeare himself, everything from his love affair with Viola de Lesseps to his creation of Romeo and Juliet. A Midsummer Night’s Dream, is one of the most famous plays of Shakespeare’s, revolving around the tumultuous relationships of four lovers, aided, and sometimes thwarted by the mischief of fairies. Although Shakespeare in Love outlines a few of the characteristicsRead MoreManipulating The Supernatural : William Shakespeare s Othello And A Midsummer Night s Dream883 Words   |  4 Pagestoward people that we can relate to. Because of this Shakespeare made his characters as relatable as possible to the audience members of the late fifteenth and early sixteenth century and their views on life so he could generate more recognition for his plays. Throughout Shakes peare s plays, Othello and A Midsummer Night’s Dream, he appeals to the audience by relating to their human nature. One of the major observations of human nature that Shakespeare likely made and incorporated into his plays is theRead MoreFantasy vs. Reality in a Midsummer Nights Dream Essay1126 Words   |  5 Pagesand Reality in A Midsummer Night’s Dream In A Midsummer Night’s Dream, Shakespeare easily blurs the lines of reality by inviting the audience into a dream. He seamlessly toys with the boundaries between fantasy and reality. Among the patterns within the play, one is controlled and ordered by a series of contrasts: the conflict of the sleeping and waking states, the interchange of reality and illusion, and the mirrored worlds of Fairy and Human. A Midsummer Nights Dream gives us insightRead MoreA Midsummer Nights Dream Essay1482 Words   |  6 PagesA Midsummer Night’s Dream: by William Shakespeare William Shakespeare was born in April 1564. He had married at the age of eighteen to a twenty-six year old woman named Anne Hathaway in 1582. He had a daughter named Susanna and twins, Judith and Hamnet. Hamnet, his only son, died at age eleven. Shakespeare died in April 1616. Despite the fact that Shakespeare wrote some thirty-seven plays, owned part of his theatrical company, acted in plays, and retired a relatively wealthy man in the cityRead MoreA Midsummer Night s Dream Essay854 Words   |  4 PagesA Midsummer NIght’s Dream A â€Å" Midsummer Night’s Dream† is a classical play written by William Shakespeare. It is one of his more eccentric piece of work. The play is about the struggle of love between four essential characters: Hermia, Lysander, Demetrius , and Helena. However, it is not quite that simple. The play is quite confusing. In â€Å"Midsummer Night’s dream† the play take place in two realms fairy realm and human realm, two of the three main settings. Another one of the settings take placeRead MoreA Descriptive Bibliography Of Shakespeare s A Midsummer Night s Dream 1542 Words   |  7 PagesShakespeare’s â€Å"A Midsummer Night’s Dream† William Shakespeare was born April 1564 and grew up in Strafford-upon-Avon. He wrote â€Å"A Midsummer Night’s Dream† in his early years as a playwright. He also wrote the play is a mixture of romance and comedy. It tells the story of four young people who fall in love with each other with the aid of magic. Shakespeare managed to create a dream world for the audience using the characters tied to a plot filled with antics and themes that everyone can

Empirical Science Of Financial Fluctuation â€Myassignmenthelp.Com

Question: Discuss About The Empirical Science Of Financial Fluctuation? Answer: Introduction: The main purpose of this report is to analyse the financial performance of Caltex and BHP Billiton Petroleum which are considered as major petroleum companies across Australia. In order to analyse the financial performance, top down analysis and bottom up analysis has been performed in this report. The company analysis, industry analysis and economical analysis are vital aspects for the top down analysis which has been used in this report. The entire analysis is based on the key statistics of petroleum industry across Australia. Further, different financial ratios have been analysed for both companies on basis of 2017 data during the bottom up analysis. The different ratios like profitability, capital structure, and market performance as well as efficiency ratios have been analysed in order to compare the financial performance of two companies in this report. Industry Profile: The petroleum industry is selected for this report in order to analyse the financial performance of two companies named Caltex Australia and BHP Billiton Petroleum. Petroleum remained major energy source for Australia in 2016 followed by cola and natural gas. The production of petroleum products in Australia has been significantly increased from 2000 (APPEA, 2016). The amount of exploration has been the key factor for growth of petroleum industry in Australia. The depression within the prices of crude oil is significantly affecting activities of petroleum exploration which has also reduced overall revenues of companies due to lower expenditure on exploration. (Source: APPEA, 2016) The different amount of petroleum or its related products have been imported and exported by Australia from past several years. But due to reduction of oil production at domestic level, the country is mainly indulged in import activities. The industry is very significant for the economical conditions of Australia and provides several opportunities for petroleum companies to invest in the region (Petty et al, 2015). Australia has rich sedimentary basins, free marketing policies; competitive taxation system, closer proximity to Asia-pacific market and several are other benefits which can be provided by this industry to different companies across the globe as well as domestic level. Caltex Australia: Caltex Australia is one of the major petroleum companies listed in Australian Stock Exchange (ASX) which has equal ownership shared between Australian Shareholders and Chevron. The company was started in 1936 and was renamed as Caltex in 1968. The company is performing its business operations in above 60 countries across the globe including Southern Africa, Middle East as well as Asia-Pacific region. The main mission of the company is to be leading oil refining company mostly admired for companys performance, partnership and people (Caltex, 2017). The company is also focussed to maintain its sustained profitability with leadership in supply chain, asset and brand management by developing more opportunities under favourable business environment. The company has generated about 17,619M AUD in 2016 and has also witnessed great increase in its earnings per share which was good sign for the company in terms of its financial stability and overall profitability. BHP Billiton Petroleum: BHP Billiton Petroleum is a major Australian multinational company listed in ASE which is petroleum, metals and mining company headquartered at Melbourne in Australia. The company was established in 1885 and considered as biggest mining company of the world in terms of market values in 2016 and also fourth biggest company of Australia in terms of its overall revenues and market capitalisation. The main mission of the company is to enhance value of company by focusing on key areas including cost efficiencies, latent capacity, exploration, major projects, technology as well as onshore activities (BHP, 2017). The main organizational strategy of company to operate and own large, low cost, long life, upstream and expandable assets diversified with market, geography and commodity. The company has generated 30,912M AUD revenues in 2016 which are less as compared with past years due to variations in the prices of crude oil across the international market. The company has also witnessed reduc tion in its earnings per share which is also not good for its financial performance and may affect its economical stability in coming years. Top Down analysis: Top down analysis is significant approach for analysing the industrial and economical factors which can help organizations for their investment objectives. The specific industries are analysed using this approach that surely helps the organizations for better return on investments (Renz, 2016). The various factors can be used for analysing the true economical conditions including interest rates, exchange rates, GDP rates, productivity or energy prices for better investment strategy for the organizations like Caltex Australia and BHP Billiton Petroleum. Current GDP: From the economical data, it has been analysed that GDP of Australia was expanded about 1.8% in the last quarter of 2017. The GDP was about 2.7% in the 2015. From that, it analysed that GDP has been expanded about 1.1% which is a good sign for economical and business conditions (Brigham, 2014). As the value of GDP has been increased for the country, it will certainly enhance economical activities and will create more business opportunities for companies like Caltex Australia and BHP Billiton Petroleum. The increase in GDP of Australia is beneficial for the Companies as there is an increase in the economic activity of the country. Current rate of Interest: Interest rate plays very significant role for economical stability and enables the government to form effective monetary policies in order to enhance economical developments. The interest rate of Australia was 1.5% and 2% in years 2016 and 2016 respectively. It is analysed that reduction in interest rates will surely affect Australian currency as its value has been lowered that will create more exploration opportunities for petroleum companies (Finkler et al, 2016). The variations in economical conditions will affect interest rates and petroleum companies can take benefits of lower rates and can take more loans in order to enhance business operations. This will enable companies to purchase more drilling equipments or tools for petroleum exploration and provide several economical benefits to companies. $AUDs Current Value: From the economical statistics, the current value for one AUD is almost equal to 0.79 US Dollar. This indicates that value of US dollar is significantly high as compared with Australian Dollar. The fluctuation in value of currency will always affect petroleum industry or companies in a huge manner (Gitman et al, 2015). The price changes of crude oil at international market is also affecting overall economical conditions of petroleum companies but at the same time, is also creating more opportunities for companies in Australian market. The reduction of exchange rates is also one of factors which are affecting economical stability of petroleum companies. Current rate of Inflation: Inflation rate is also significant in analysing the economical conditions of country as due to this value of currency decreases whereas, rise in the prices for goods or services. The rate of inflation has been increased in past few months by 1.3% in last quarter of 2017 for Australia (McKinney, 2015). This is low as compared with the past inflation rates in 2015 and 2016 which were about 1.8% and 1.6% respectively. The petroleum companies like Caltex, BHP Billiton Petroleum can take benefits from these lower rates and can create more business expansion opportunities for them. It is also analysed that reduced inflation rates will also help to reduce the rate of interest rates that will create more exploration or business opportunities for petroleum companies like Caltex Australia and BHP Billiton Petroleum. There is direct impact of interest rates on the inflation and can also affect borrowing costs for long term or short term debts of the companies (Bryce, 2017). Increase in rates of interest will make companies to consider mortgages or loans accomplishing their financial needs and at the same time will also affect supply or demand for the petroleum products or services of the companies. Personal income for Disposable: The personal income disposed by the individuals remained after payment of all taxes is also one of the key indicators to measure the economical conditions for business. The present income for disposable in Australia has been increased by 123.09% from 122.52% for years 2015 to 2016. The changes have been also witnessed in income level which is about 0.46% in the present scenario which is a huge difference as compared with 1.03% in the last financial year (Armour et al, 2016). The increase in value of personal income is a good sign for the trades across the region and will create more business opportunities for petroleum companies. It is also analysed that income level of individual across Australia has been raised in significantly in past years which has encouraged petroleum companies to leverage more financial aspects for their exploration and mining activities and also enables them to create more employment opportunities in the petroleum industry (Schiavo-Campo, 2017). This will also provide skilled workforce for petroleum companies to handle their complex business operations like exploration and mining activities and at the same time, also help to expand overall business operations of Caltex Australia and BHP Billiton Petroleum within Australian region. Bottom Up analysis: Bottom up analysis is a significant approach for analysing the investment prospects for the macroeconomic business conditions of the organizations. This approach also enables investor to effectively analyse the financial performance of specific companies instead of overall industry or economy and gives them in-depth information in order to accomplish their investment objectives in more efficient manner (Campbel et al, 2016). The different financial ratios have been analysed for comparing the financial position of Caltex Australia and BHP Billiton Petroleum. (Source: Morning Star, 2017) Profitability Ratio: Overall efficiency of the companies is generally measured by the profitability ratio. Net income, operating income and operating margins are important aspects to analyse this ratio. Operating margins enable the companies to transform their sales into overall revenues. This is important criteria to evaluate performance of business operations of companies and main indicator for different creditors or investors (Henderson et al, 2015). Operating margin for Caltex is 3.5% and for BHP Billiton Petroleum is 20.2% in 2017 which indicates that BHP Billiton Petroleum has generated more revenues in 2016 and performed far better than Caltex. Operating income helps to evaluate overall profits for the companies. Operating income for Caltex is 620M AUD and for BHP Billiton Petroleum is 6,852M AUD in 2017 which indicates that BHP Billiton Petroleum was more able of payment for its debts and also gained more profits as compared to Caltex (Sweeting, 2017). Net income is also called by net profits and defines the financial stability of the companies. Net income for Caltex is 610M AUD and for BHP Billiton Petroleum is 2,488M AUD in 2017 which indicates BHP Billiton Petroleum has higher profitability ratio and has more stable financial position and performance as compared to Caltex. Efficiency Ratio: The effective use of companys assets or liabilities can be measured by the efficiency ratio. Fixed asset turnover and asset turnover ratio are important aspects of efficiency ratios. The investment returns obtained by companies is determined with help of fixed assets turnover (Burton and Brown, 2014). This ratio for Caltex is 6.66 and for BHP Billiton Petroleum is 0.41 in 2017 which indicates that BHP Billiton Petroleum is not able to effectively uses its assets as compared to Caltex which is not a positive sign for BHP Billiton Petroleum for its financial market. The amount of revenues generated from companys assets is effectively determined from asset turnover ratio. Asset turnover ratio for Caltex is 3.39 and for BHP Billiton Petroleum is 0.29 in 2017 which indicates that BHP Billiton Petroleum has lower turnover ratio for its assets that also represents that business operations of BHP Billiton Petroleum is less efficient as compared to Caltex on basis of different efficiency ratios (Weygandt et al, 2015). Capital Structure: The ratio which enables the companies to determine financial leverage for their investment and also defines financial position of companies in case investment is not done in appropriate manner is called as capital structure. Debt / equity ratio and gearing ratio are important aspects to analyse the capital structure for the companies (DRURY, 2013). Debt / equity ratio for Caltex is 0.25 and for BHP Billiton Petroleum is 0.54 in 2017 which indicate that Caltex is in better financial position for equity dependency of its shareholders as compared to BHP Billiton Petroleum. The financial leverages for the companies are determined from the gearing ratios. This also helps to determine amount of finance done by the companies on their overall assets. Gearing ratio for Caltex is 1.90 and for BHP Billiton Petroleum is 2.11 which indicates that BHP Billiton Petroleum has invested more on its assets and has better financial leverage as compared to Caltex (Kaplan, 2014). This also signifies that more shareholders are willing to invest in BHP Billiton Petroleum as compared to Caltex which indicates that financial performance of BHP Billiton Petroleum is far better than its competitor Caltex in the petroleum industry. Market Performance: The present share prices for the companies help to analyse their market performance at both domestic as well as global level. Earnings per share (EPS), Dividend per share (DPS), payout ratio as well as book value per share are important aspects to analyse the market performance of the companies. The ratio of net income with respect to average outstanding shares is defined by EPS (Takayasu, 2013). The distribution of profits will be better for the companies in case of higher value for EPS. EPS for Caltex is 4.63 and for BHP Billiton Petroleum is 0.93 in 2017 which indicates that Caltex has higher value for EPS as compared to BHP Billiton Petroleum that also signifies that Caltex will efficiently distribute its profits within the marketplace (Coleman, 2016). The amount of dividends will be received by the investors from companies is mainly determined from the dividend per share (DPS). DPS for Caltex is 2.51M AUD and for BHP Billiton Petroleum is 1.56M AUD in 2017 which indicates that Caltex has paid higher dividends to its different investors that also signifies better market performance of Caltex as compared to BHP Billiton Petroleum (Ledgerwood et al, 2013). The amount of net income distributed by the companies among all their shareholders is analysed using the payout ratios. The sustainability for market performance is indicated the payout ratios. Payout ratio for Caltex is 54.1% and for BHP Billiton Petroleum is 64.5% in 2017 which indicates that dividend distribution capability of BHP Billiton Petroleum is better than Caltex and also signifies that BHP Billiton Petroleum will be in better position to pay dividends to their shareholders and determines amount of stakes sold to stakeholders by companies (Taylor, 2013). The adequate business valuation of companies as compared with their competitors in same industry is analysed using the book value / share. The outstanding shares for stocks are effectively related with their shareholders using the book value / share (Zeff, 2016). BVS for Caltex is 15.97 and for BHP Billiton Petroleum are 21.29 in 2017 which indicates that BHP Billiton Petroleum has higher value for BVS as compared to Caltex which also signifies that market performance of BHP Billiton Petroleum is far better that Caltex and also has higher market capitalisation (Danthine and Donaldson, 2014). Comparative Analysis: From the above discussion and measuring different financial ratios, it has been analysed that there is a huge increment of overall assets for BHP Billiton Petroleum as compared to Caltex in 2017. The company has earned higher profits as compared to different competitors in the petroleum industry. BHP Billiton Petroleum has higher value for different profitability ratios in 2017 which also indicates better financial performance of the company in 2017 (Horowitz, 2014). The amount of revenues generation, operating margins, net income and other factors has also indicated that financial performance of BHP Billiton Petroleum is far better than Caltex in the international as well as domestic market and also has strong market capitalisation. Recommendations: From the report, it is concluded that investor will prefer to invest their money in BHP Billiton Petroleum as compared to Caltex on the basis of their financial performance in 2017. It is analysed that market capitalisation of Caltex is far behind than BHP Billiton Petroleum in 2017 which is not suitable for investors or other creditors. The financial figures has also signified that Asset turnover ratio for Caltex is 3.39 and for BHP Billiton Petroleum is 0.29 in 2017 which indicates that BHP Billiton Petroleum that company has not efficiently used its assets in order to enhance its financial performance (Greenbaum et al, 2015). This signifies that BHP Billiton Petroleum needs to raise more funds from their equities in order to enhance their profitability level. The company also needs to focus on use of their assets in efficient manner that will also help the company to generate more revenues in coming financial years. Further, it is also analysed from this report that profitability level of companies are surely affected from different economic factors that can also hamper their financial performance. 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