Chapter 4-table 3: Do financial statements help in Financial decisions and corporate valuation

Table 3: Distribution of the company Total equity by

Period (In Millions of U.S. Dollars)

Bank)	2004	2005	2006	2007	2008
1. Compass Group PLC	3200	2902	2973	2769	2820
2. Toronto Dominion Bank	10188	12759	15788	17213	25472
3. Harris Corp	1279	1439	1662	1904	2274
4. Morgan Stanley	28206	29182	35364	31269	50831
5. Boeing Co	11286	11059	4739	9004	-1264

Table 3 presents the data on the total equity of the selected companies by period. It reveals that in 2004 Compass Group PLC total equity was US$ 3200 Millions U.S. dollars. But, this dropped to US$2902 in the subsequent year. There was a minimal rebound in 2006 However, it again fell back to its lowest level in 2007 as evidenced by the values US$3200, US$2902, US$2973, US$2769, and US$2820 respectively. This means that Compass Group PLC earned US$ 51 millions in 2008.

The total equity of Toronto Dominion Bank was increasing from 2004 to 2008 as evidenced by the value of US$10188, US$12759, US$15788, US$17213, and US$25472 respectively. This means that Toronto Dominion Bank earned US$ 8259 millions in 2008.

It is also notable that the total equity of Harris Corp was increasing from 2004 to 2008 as evidenced by the values US$1279, US$1439, US$1662, US$1904, and US$2274 respectively. This means that Harris Corp earned US$ 370 millions in 2008.

The total equity of Morgan Stanley increased from 2004 to 2008, except for 2007, as evidenced by the values US$28206, US$29182, US$35364, US$31269, and US$50831 respectively. This means that Morgan Stanley earned US$ 19562 millions in 2008.

It also reveals that Boeing Co has high net income in 2007, but, decreased dramatically in 2008 as evidenced by the values US$11286, US$11059, US$4739, US$9004, and US$-1264 respectively. This means that Boeing Co lost US$ 10268 millions in 2008.

Generally it reveals that all of the selected banks have good equity distribution except for Boeing Co. The company therefore has very low total equity and highly deficient in 2008.