Chapter 4-table 5: Do financial statements help in Financial decisions and corporate valuation

Table 5: Distribution of the company Total Liabilities by

Period (In Millions of U.S. Dollars)

Bank	2004	2005	2006	2007	2008
1. Compass Group PLC	7705	8182	6421	5523	6104
2. Toronto Dominion Bank	239940	280942	300193	322259	427464
3. Harris Corp	947	1018	1480	2502	2285
4. Morgan Stanley	719128	869341	1085828	1014140	607981
5. Boeing Co	44938	48937	47055	49982	55065

Table 5 shows the distribution of the company Total Liabilities by period (In Millions of U.S. Dollars). It reveals that the Compass Group PLC have a decrease in total liabilities in 2005 to 2007, but subsequently increased in 2008 as evidenced by the values US$7705, US$8182, US$6421, US$5523, and US$6104 respectively. This means that the reputation of the bank is still in good. However, company financial risk is intensifying because of the increasing liabilities.

It is notable that Toronto Dominion Bank has increasing total liabilities as evidenced by the values US$239940, US$280942, US$300193, US$322259, and US$427464 respectively. This implies that in case of fresh investments, capitalist should be ready to take the relatively high risk considering the very high liabilities.

The total liabilities of Harris Corp in 2004 to 2007 were increasing but decreased in 2008 as evidenced by the values US$947, US$1018, US$1480, US$2502, and US$2285 respectively. This implies that Harris Corp paid their obligations in 2008.

Morgan Stanley’s total liabilities increased from 2004 to 2006 and decreased from 2007 to 2008 as evidenced by the values US$719128, US$869341, US$1085828, US$1014140, and US$607981 respectively. This implies that Morgan Stanley started to pay their liabilities in 2007.

Boeing Co’s total liabilities increased except in 2005 as evidenced by the value of US$44938, US$48937, US$47055l, US$49982, and US$55065 respectively. This means that it will have a continuous increase in total liabilities in every succeeding period.