With most companies filings their Q1 2014 financials we wanted to offer an overview of how do the financial results compare to last year (Q1 2013). Overall, it seems like Q1 2014 compares relatively favorably to Q1 2013, showing a significant increase in Revenue but a decrease in Net Income for larger companies. It seems like the smallest companies had the best financial results and are investing heavily in their future.
We examine the Year over Year change in average measures per firm. This analysis excludes financial firms.
Overall, it seems like average Revenue has increased for all size companies. At the same time, for the larger companies, the Cost of Revenue, has increased by more than the Revenue resulting in a decrease in average Net Income. The smallest companies showed a very moderate increase in the Cost of Revenue, resulting in a large increase in Net Income. **Please note that Net Income includes onetime charges.
As a next step we examine what happened to the companies’ resources and potential impact on their future. We observe an increase in average cash held by the companies with the smallest companies increasing their cash holdings the most. The increase in Total Assets and Capital Expenditures seems to indicate that companies are increasing in size and spending more on Capital Expenditures. The smallest companies may see the brightest future.
Overall, Q1 2014 was mixed. We observe an increase in Revenue, but an increase in expenses resulting in a decrease in Net Income for the larger companies. It seems like the smallest group of companies fared the best, showing a substantial increase in Net Income, Cash and Capital Expenditures.
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