Jacobs Engineering Group Inc.
Adrienne Beck, Lisa Bunch, Robert Hebert, Kenneth Mccollough, Charrel Sanabria, and Nurah Stanley
March 17, 2014
Jacobs Engineering Group Inc.
Market growth opportunities are increasing for Jacobs Engineering Group; in 2013 the company closely generates $12 billion in revenue. This organization is a world leader in professional technical services. Jacobs Engineering Group is vesting in long-term business global strategies that produce strong client relationship through customer value, cost advantages, profits, and growth that attracts new investors, which contributes to the company’s direct growth activities.
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In this chart debt securities were shown to have decreased from 2012 to 2013 for both U.S. pension plans as well as Non-U.S. pension plans (Jacobs Engineering Group Inc., 2013).
The company’s common stock is listed on the New York Stock Exchanges under the symbol JEC. November 14, 2013 the company records the total of 1,233 shareholders, which was reported by the company’s transfer agent (Jacobs Engineering Group Inc., 2013). The policy of Jacobs Engineering Group is to utilize a cash flow from their operations to invest future business advancement, reduce debts expenses, and repurchase common stock through a buy-back program from the approval process of the company’s board of directors. The company does not demonstrate the distributions of dividends to its shareholder nor do they report any future actions of paying dividends (Jacobs Engineering Group Inc., 2013). The organization has reviewed the idea of payout activities, yet the board of directors does not have intentions of moving forward with such process.
Another reporting aspect of the company stock can be located on page 50, which details the equity compensation plans as demonstrated in the chart below. Column A represents Number of securities to be issued upon exercise of outstanding options, warrants, and rights. Column B demonstrates weighted-average exercise price of outstanding options, warrant, and rights. Lastly, Column C exhibits number of securities remaining available for future issuance under the equality compensation plan with the exclusion of securities represented in Column A.
(Jacobs Engineering Group Inc., 2013)
Stock and Debt Securities Investments
Jacobs Engineering Group invests in stocks and debt securities to ensure that the company has leverage over target companies and voting abilities. The turnaround on short term investments helps the corporation make extra profits, which provides access to the company in buying debt securities. Corporations invest in their own stock, which allows preservation of company control, reducing outside board members influences, and trust of present and future investors. Also it may allow for taking on new clients from the company that they buy debt securities. When a corporations buys debt securities of other companies these offering, seemingly very fast investment, generate profits that will help improve a company financial health. The company earns quick profits with little risk. It provides extra money that a corporation can use for other investments or when there is a need extra money for a project that the company wants to pursue.
Risk and Rewards – Adrienne
For the fiscal year ending September 30, 2013, Jacobs Consolidated Balance Sheets showed cash and cash equivalents of $1.3 billion dollars. According to Jacobs Investor Relations” (2010), “We consider highly liquid investments with original maturities of less than three months to be cash equivalents.” By purchasing investments in debt or equity...