Executive Summary Ã¯Â¿Â½ PAGE \* MERGEFORMAT Ã¯Â¿Â½1Ã¯Â¿Â½
Executive Summary (Dow Chemical)
University of Phoenix
Executive Summary (Dow Chemical)
Executive summaries are a pre-curser to reports and proposals that companies provide to the public. The public base their decision to read these documents in its entirety by company's well-polished executive summary. Executive summaries cover a broad picture of what is presented in the more detailed report. A company that has produced several executive summaries is Dow Chemical. Dow Chemical is considered a leader in science and technology, according to Dow Chemical. (2009) Dow Chemical seeks the progression of human essentials through the combination of science and technology along with the human aspect.
Company History: When was the company founded? By who? Other historical facts?
Dow Chemical's corporate history from their website provides us with a detailed timeline of the founding and significant events for Dow Chemical. The company was founded on May 18th, 1897 by Herbert Dow.
Herbert Dow intended to manufacture bleach for sale on a commercial scale. The company began commercial production of bleach in 1898. Lewis (1969) tells us that Herbert Dow, while still a student, discovered that bromine could be extracted from brine by using electricity. This discovery formed the basis for the Dow Chemical Company.
Dow Chemical was formed during a period of rapid industrialization and demand for chemicals was increasing rapidly (Lewis, 1969). The company faced fierce competition from Britain and Germany. At that period there were a number of countries with monopolies on the production of certain chemicals, or that had organized their chemicals industries in what ways that would now be considered illegal under anti-trust laws. Some of the breakthroughs that Dow made in breaking these monopolies included indigo (an important dye), bromine, bleach, and Iodine. In addition, Dow Chemical also discovered compounds needed to create synthetic rubber, and a process to increase the amount of oil recovered from oil wells. The company also created a process for making phenols, which are themselves used in the production of numerous plastics. It is interesting to note, that the Japanese in the Second World War conquered much of the worlds rubber production, which at that time was based on the sap of the rubber tree. The Dow Chemical discovery was instrumental in removing America, and the rest of the world's dependence on the plantations. Other products developed by Dow include Styrofoam, saran, and polystyrene. (Facts on File)
Dow was targeted by protesters during the Vietnam War because of their involvement in the production of napalm (Facts on File). One of the authors (May) dealt with the liability claims arising from Dow's involvement in the production of Agent Orange, a defoliant used in the Vietnam War that contained a powerful carcinogen, dioxin; and claims from Dow's production of silicone breast implants. At that time (early-mid 1980s), both of these issues were quite widely known. More recently, Dow acquired Rohm & Haas, a large rival US chemical company, on April 1st, 2009 (Our Company).
Who is the Audit firm for the company?
Dow Chemical's current auditor is Deloitte & Touche LLP. Deloitte & Touche LLP have been the auditors of the company since at least 2004, based on their report as independent auditors on Dow Chemical's annual 10-K reports from the Dow website.
What stock exchange is the company listed on? What is their ticker symbol?
Dow Chemical has the symbol DOW that is a part of the Standard and Poor's 500, also known as the S&P 500. The S&P 500 is a weighted index that is comprised of large publicly held companies. These companies trade their stock on either the New York Stock Exchange (NYSE) or National Association of Securities Dealers Automated Quotations (NASDAQ). Dow Chemical trades stock on NYSE as well as NASDAQ.
How much cash and cash equivalents did the company have at the end of its two (2) most recent annual reporting periods?
What were the company's total current assets at the end of its two (2) most recent annual reporting periods? In what order should current assets be presented?
For 2008, Dow Chemical's total year-end assets were $16,060. For 2007, the year-end total was $18,654.The order that the total current assets should be presented is the order that the company plans to convert the assets into cash.
What were the two largest current assets at the end of its two (2) most recent annual reporting periods?
The two largest current assets at the end of the annual report of 2008 were the inventories at $6,036, as well as 2007 at $6,885. Dow Chemical Company reduced their total current assets from the year 2007 to 2008.
What were the company's total assets at the end of its two (2) most recent annual reporting periods?
The total assets include the current assets, long-term investments, property, plants, equipment, and intangible sections of the balance sheet. Dow Chemical's total assets for 2008 were $45,474; for 2007 was $48,800; and will be discussed for 2009 in May of 2009.
What amount of accounts payable did the company have at the end of its two (2) most recent annual reporting periods?
Taking a look at Dow Chemical's 2008 and 2007 annual reports, the largest accounts payable for both years are listed under trade and other. For 2008, trade has an amount of $3,306,000,000; and the amount under the other category is $2,227,000,000. For 2007, we see the same, with trade at $4,555,000,000, and other at $1,981,000,000. These can be found on page 66 of the spread sheet for the 2008 annual report.
What were the company's total current liabilities at the end of its two (2) most recent annual reporting periods?
Current liabilities can be found on page 66 of the 2008 Annual report. The total current liabilities for the end of the 2008 year were $13,108,000,000, and for end of the year 2007 we see these numbers at $12,445,000,000.
What were the company's two largest current liabilities at the end of its two (2) most recent annual reporting periods?
The company's two largest current liabilities for the year 2008, reside with accrued and other liabilities at $2,625,000,000 and trade at $3,306,000,000. For the year 2007, it is evident that it follows the same trend. Accrued and other liabilities are $2,512,000,000 and trade is $4,555,000,000. These are displayed in a detailed breakdown on page 66 of the Dow Chemical Report for 2008.
What were the company's total liabilities at the end of its two (2) most recent annual reporting periods?
Dow Chemicals' total liabilities at the end of its two most recent annual reporting periods was 13.11 billion for the period reporting 02/2009 and 12.44 billion for the period reporting for 2008.
What were the company's revenues (or net revenues) for the last three annual reporting periods?
The company's revenues or net revenues for the last three annual reporting periods was 5.5 billion currently for the 2009 report 7.04 billion for the 2008 annual report and 9.62 billion for the 2007 annual report.
What was the company's net income for the last three annual reporting periods?
The net income for the last three annual reporting periods is 5.79 million for the most recent 2009 annual report 2.89 billion for the annual report for 2008 and 3.72 billion for the annual report for 2007.
What was the change in dollars in the company's net income from its most recent annual reporting period to the previous annual reporting period? What was the change in dollars in the company's net income from its previous year to the year before annual reporting period?
The difference in the company's net income from its most recent annual reporting period to the previous annual reporting period was 2.31 billion.
As presented in the executive summary with Dow Chemical, it has been shown that the current assets have decreased over the last two years, with the inventory section being the largest assets. While over the last two years, Dow Chemical's liabilities have risen, with accrual and trade being the largest liabilities. Over the last three years, revenue has increased while income has decreased for Dow Chemical. What needs to be remembered is that this executive summary of Dow Chemical has simply been an overview of the more detailed report.
Davis L Lewis. (1969). The Dow Story: The History of the Dow Chemical Company. Business History Review (pre-1986), 43(000002), 246. Retrieved April 4, 2009, from ABI/INFORM Global database. (Document ID: 99122162).
"Dow Chemical Company." Facts on File. 4 Apr. 2009. Keyword: history of the dow chemical company.
"Dow Chemical Company." Our Company. 5 Apr. 2009. http://www.dow.com/about/
"Portfolio" Retrieved April 3, 2009, from http://www.portfolio.com/resources/company-
"Our Company." www.dow.com. The Dow Chemical Company. 4 Apr. 2009 <http://www.dow.com/about/aboutdow/history/1890s.htm>.
Gross Operating Profit
Operating Income before D & A (EBITDA)
Total Income Before Interest Expenses (EBIT)
Total Net Income
Basic EPS, Total
Diluted EPS, Total
Cash and Equivalents
Net Cash From Continuing Operations
Net Cash From Investing Activities
Net Cash From Financing Activities
Net Change in Cash & Cash Equivalents
*Retrieved April 3, 2009, from http://www.portfolio.com/resources/company-profiles/The-Dow-Chemical-Company-94/financials