Measures of the success 16
16 Measures of the success Measures of the success
i.Using financial measures of performance,we find that Fuji Xerox grew rapidly,but that it did not contribute much cash to Xerox" 17
17 i. Using financial measures of performance, w e find that Fuji Xerox grew rapidly, but that it did not contribute much cash to Xerox” i. Using financial measures of performance, w e find that Fuji Xerox grew rapidly, but that it did not contribute much cash to Xerox
Its revenues grew from less that 5%of Xerox's in the 1970s to over 30%in the late 1980s(exhibit 1)月 A 20%p.a.growth during 1980-1985,compared to 4%p.a.for Xerox (exhibit 5 and 7); > Its profit grow frm about 10%of Xerox's to about 30%between 1981 and 1990 (exhibit 5 and 7).Note that not all this profit stream goes to Xerox.The latter is entitled to 2/3 of Rank Xerox's 50%share,l.e.to 1/3 of Fuji Xerox's earnings. 18
18 ¾ Its revenues grew from less that 5% of Xerox’s in the 1970s to over 30% in the late 1980s(exhibit 1); ¾ A 20% p.a. growth during 1980-1985, compared to 4% p.a. for Xerox (exhibit 5 and 7); ¾ Its profit grow frm about 10% of Xerox’s to about 30% between 1981 and 1990 (exhibit 5 and 7). Note that not all this profit stream goes to Xerox. The latter is entitled to 2/3 of Rank Xerox’s 50% share, I.e. to 1/3 of Fuji Xerox’s earnings
But because Fuji Xerox only paid out in dividends about 14-19%of its annual earnings, the total amount of cash repatriated to Xerox during 1971-1989 was little more than $50 million.(Derived from exhibit 7:1/3 of the total dividends paid out).This payout ration represented 1-2%of Fuji Xerox's equity.Note that,unlike Xerox,which regularly paid out between 50%and 80%of its earnings,Fuji Photo Film was accustomed to this pattern,as its own dividends to shareholders represented no more than 3-4%of earnings. 19
19 ¾ But because Fuji Xerox only paid out in dividends about 14-19 % o f its annual earnings, the total amount of cash repatriated to Xerox during 1971-1989 was little more than $50 million. (Derived from exhibit 7: 1/3 of the total dividends paid out). This pa yout ration represented 1-2 % of Fuji Xerox’s equit y. Note that, unlike Xerox, which regularly paid out between 50 % and 80 % of its earnings, Fuji Photo Film was accustomed to this pattern, as its own dividends to shareholders represented no more than 3-4% of earnings
ii.Using market and technology measures,we can get a sense of the rise in Fuji Xerox's competitiveness 20
20 ii. Using market and technology measures, w e can get a sense of the rise in Fuji Xerox’s competitiveness ii. Using market and technology measures, w e can get a sense of the rise in Fuji Xerox’s competitiveness