Mircalot Hospitals

Revenue vs. Shareholder

If you take a look at the revenue for the RIM in the past 10 years, you will see that it has consistently increased exponentially. However, the stock value in 2009 plummeted despite the continued increase in revenue. In fact, revenue nearly doubled that year compared to the previous one. While this may seem like contradicting information, one has to realize that stock value is based on consumer perception and not solely on the sales a company makes or its net income. When investors look at a company, numbers usually give a fair indication of how well the company is doing. However, in the case of RIM, their stock value plunged despite good numbers. Investors did not feel confident in the company’s ability to sustain its market share and contend with its competitors. This lack of confidence could be caused by a vast array of reasons. Investors could have felt RIM did not have the proper managerial structure to continue its expansion, or they may have felt that RIM was spending too much money on technology or research that consumers would not be willing to use.

Revenue

Revenue is the total income RIM made in sales. If we take a look at the 10 year report, we can see that it has been increasing at a steady pace. Just looking at revenue numbers, one would believe that RIM is doing well and is steadily expanding. If investors based their decisions solely on the financial situation of RIM and the amount of money they earn, they would surely be a major stock to invest in. We can also see that RIM has a relatively low debt level compared to their revenue from each year. With the minimal amount of short term debt level they carry around, an investor should want to invest in RIM if all they looked at was the numbers.