Business Financial Resources
Booz Allen Hilton was founded by Edwin Booz originally in 1914 as a management consultant and production. The USA Navy in 1940 was the first big consultants that the company had scored since establishment, but since then grown to see the requirements of clients evolve necessitating expansion beyond the management of technology, engineering, and analytics. This consequently led to the expansion of the company’s revenue streams. The company’s revenue for the year ending 31st March 2016 were $5.27, $0.21 billion of the preceding year's revenues in earnings before interest, tax, depreciation, and amortization (EBITDA). Adjusted revenues were $523.4 and $534 in 2014 and 2015 respectively million in the last quarter of the financial year in 2015. These represent a 0.2% growth in (EBITDA) margins from 9.7% t0 9.7%, while the company’s revenues declined slightly to $240.3 million in the fiscal year 2014 as compared to 4241.9 in 2014.
Besides the slope in the revenue margins, Horacio (CEO) noted that the organization's performance is commendable given the competitive nature of the market especially in the bidding of government contracts. The company recorded a 3.7% decrease in revenue compared to 2014 was associated with a decrease in the billable hours due to decreased consultancy during the fiscal year. In the financial year 2015, the company had an acceptable change in the company’s operational income as follows, $465.1 compared to $470.2 million. The change was driven by the slope in the company revenues. The mitigation strategy involved increasing the contract profitability and reducing the compensation and other marginal expenses. The company also minimized on depreciation and repayment expenses.
The net income in 2015 decreased from $241.1 to $240.3. This consequently reduced the amount of adjusted operating income while leading to a spike in the effective tax rate over the prior year. Operating income was also influenced by the partially adjusted interest rates. During this financial year, the company also saw a decrease in the (EBITDA) to $523.5 from $534.0. The company can also contribute to the CEO’S annual commentary noting besides a decline in the revenue the company was fairing impressively. The decline was similar to that of the company operational revenue excluding the decrease in the expenses incurred amortization and depreciation as this is essentially the matter at hand.
Booz Allen Hamilton has three classes of shares, Class A, Class B and Class C. Class A common stocks, Class C and Class E have voting rights while Class B holders do not have voting rights. In the Board of Directors in December 2011 approved the repurchase in $30 million, which was not positively taken in the stock market, since of March 2014 there no any purchases. In 2014, the organization realized a stock-based compensation liability of $65.9 and $99.1 repetitively, this has led to the realization of the company’s rollover being vested and yet not exercised. The company’s stocks attracted a dividend of $0.10 repetitively. This has resulted in the development of the plan leading to the organizational ability to make the said changes. This was an increase from the preceding year (2013). A $1.50 dividend had an option for their EIP as their dividend being payable in 29th of June.
Lately, in 2015, the quarterly monthly dividends had increased from the preceding years, $0.10 to $0.13 per share as of May 21st of 2015 which was payable on the 10th of June. The company has also been in a position to make a total of 900,000 sales of units of unregistered shares which were being offered on the market at $27.04. A comparison of cumulative returns of the player in the same industry depicts an exponential growth of the returns from the stock market between March of 2014 and March of 2016. Assuming the key players (Booz Allen Hamilton Holding Corporation, Russel 1000 Index, and DJ US computer services index) each invested $100, the company had a growth margin of $200 cumulative returns compared to Russel 1000 Index and $225 while compared to DJ US computer services index.
Booz Allen Hamilton is the leaders in the management, a technological and engineering consultancy. The company is, therefore, has a leading role in the industry setting them apart from their competitors. Their financial ability to develop new technology by investing in ideas and teams that are innovative has to lead the company to set a greater margin with the rest of the consultancy allies. The company has leveraged this financial capability against their competitors by investing in their strategic plan and the perks that their employees are entitled to. The organization's financial ability has given the ability to handle clients with needs that require heavy investments that lead to the organization being able to service the government besides the heavy capital investment that goes to their services.
Technological Resources in a Business
The firm has achieved milestones in technological advancements. The company has been the leader in technological advancements. The organization has dedicated resources for the engineering and information technology in the development of the C4ISR and building informative health system. The C4ISR system is an ambitious system that aims to help the military troops in the acquisition of comprehensive information that they deem helpful to ease in the conducting of their operations ("Technologies and Capabilities | Booz Allen Hamilton", 2017). Booz Allen has continually worked to merge interdisciplinary systems such as C4ISR with distributed common ground systems software by establishing an interface that encourages interoperability in the organization. Besides the development of the C4ISR for the military, the company has also built an outstanding organizational pinnacle in technological innovation by developing an interface of the multi-disciplinary in the organization.
The organization has developed a range of products that has led to the pooling of clients seeking the company’s services. This including biometric technology which helps the clients to develop biometric systems according to their needs. The firm also uses Business Intelligence in where the organization executes an adjustable, flexible, and scalable solution to manage the organization's information and make an analysis that helps the client management in the process of decision making. The firm has developed advanced data management systems that have aided the company in the rendering of services to clients that enable them to come up with cutting-edge solutions. The firm has a highly skilled and innovative company to achieve milestones in the rendering of services, the highly skilled software developers have helped to surpassing the company’s goals, the company will, therefore, be in a position to make the changes the technology and business structures of their clients.
Booz Allen Hamilton new business units are strategic in the management of their clients' firms based on the resources and the challenges the organization is facing. To tackle this using the technology resources the company has thus resulted in enterprise content management, which gives build an end to end connection for either of the ends that access the organization's resources and the current position of the management on the distribution of the resources compared to the SWOT analysis. The organization collaborated with the clients to develop business operational processes, documents, organizations, management records, and workout plan for the current system. The organization is in a position to make the changes as expected.
The interface created for the interoperability of a large and complex system, the company has an IT program management office. The office handles all the issues that may arise and offer advice to the organization respectively. The large integrated systems include access to the industry, procedures, and tools for ease of operation ("Technologies and Capabilities | Booz Allen Hamilton", 2017). Finally, the company has developed performance-based application management which uses the company’s performance assessment methodologies that help the customer to enhance their portfolio of their applications. These translates to a reduction of the operational costs translating to the organizational efficiency.
These technological resources have been heavily capitalized on in the organization resulting to groundbreaking innovations. The company has therefore capitalized on the company’s technological innovations to land contract, such as from the government despite stiff competition. The aegis of the strong financial base the company has been able to solve complex problems using advanced technological platforms for accurate, dependable results. The company has therefore attracted business from corporate and governmental agencies. This has set the organization at the epitome of the industry, giving them a backing from the government and other clients. The organization's commitment to core values such as fairness and upholding integrity at all times. This has led to benevolent linkage with the customers. The company has therefore encouraged the company’s market share.
Cite this page
Financial and Technological Resources of Booz Allen Hilton, Essay Sample. (2018, Feb 12). Retrieved from https://speedypaper.com/essays/101-audit-report
If you are the original author of this essay and no longer wish to have it published on the SpeedyPaper website, please click below to request its removal:
- Free Essay: Nike Analysis Case Study
- Free Essay in Finance: Amazon Financial Performance and Health
- Agile Techniques Essay Sample for Free
- Free Essay with Business Growth Strategies
- Free Essay Comprising the Interview with the CEO for Subway Restaurant
- Essay Example about the Role of Operation Management in Customer Satisfaction
- Reflective Personal Development and Plan - Essay Example