Operations, Financials & Stock MKT

Zaneeka Brown

Rutgers Business School - Newark and New Brunswick

Supply Chain Analytics

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Table of Content

How Financials Affect Market Capitalization
Total Market Capitalization (World)
Total Net Income (World)
Median Market Capitalization
Median Net Income
Total Market Capitalization - US, China, India, Germany, Italy
Industrial Revenue & Net Margin by 1% COGS Savings Breakdown - US, China, India, Germany, Italy
Total Market Capitalization Trend By Country (2018-2023)
Median Market Capitalization, Net Income, Total Cost Growth Rate (Major Countries Comparison) 2018-2023
Median Market Capitalization & Net Income (China vs India)
Industrial Connections to Financials in Health Care (Industry Median) Comparison 2018-2023
Market Capitalization & Net Income - Apple vs Microsoft vs Tesla (2018-2023)
Earnings, Shares - Apple vs Microsoft vs Tesla Cont'd (2018-2023)
Tesla's Market Capitalization & Net Income + Supply Chain Mapping
Apple's Market Capitalization & Net Income
Benchmarking by KPI - Market Cap

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HOW FINANCIALS AFFECT MARKET CAP:

Market Capitalization = Stock Price × Shares Outstanding
- Strong Financials (e.g., high earnings, low debt) = Higher Stock Price → Increased Market Cap
- Weak Financials (e.g., low earnings, high debt) = Lower Stock Price → Decreased Market Cap

EXAMPLE:
- Strong Financials: Stock price = $60 → Market cap = $600 million (10 million shares)
- Weak Financials: Stock price = $40 → Market cap = $400 million (10 million shares)

What does Market Capitalization Mean? How to Calculate it?

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Total Market Capitalization (World)

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Total Net Income (World)

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Median Market Capitalization (World)

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Median Net Income (World)

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United States' Total Market Capitalization (By Major States)

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China's Total Market Capitalization (By Major Cities)

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India's Total Market Capitalization (By Major Cities)

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Germany's Total Market Capitalization (By Major Cities)

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Italy's Total Market Capitalization (By Major Cities)

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US' Industrial Breakdown - Revenue

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US' NET MARGIN ANALYSIS FOR EACH INDUSTRY

With 1% of COGS savings, consumer goods and health care see the highest net margin improvements in the US, exceeding 1.2%.
Financials see a minimal impact due to their already low COGS percentage, while energy, telecommunications, and utilities show moderate gains.
Overall, industries with higher COGS relative to revenue benefit the most from cost reductions, while sectors with lower cost structures experience limited improvements.

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China's Industrial Breakdown - Revenue

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CHINA'S NET MARGIN ANALYSIS FOR EACH INDUSTRY

Financials benefit the most from a 1% savings in COGS, improving net margins by over 25%, while telecommunications and utilities also see significant gains in China.
Real estate shows minimal impact from cost savings, while industrials and materials see only modest improvements.
Compared to other countries, China's financial sector is uniquely positioned to gain the highest net margin boost from operational efficiencies.

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India's Industrial Breakdown - Revenue

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INDIA'S NET MARGIN ANALYSIS FOR EACH INDUSTRY

In India, the energy sector sees a moderate improvement from a 1% COGS savings due to its relatively high cost structure, while real estate benefits the most.
Consumer goods and consumer services also experience notable gains, while financials and health care are less affected due to their lower COGS proportions.
Overall, India's industries show a diverse range of impacts, with sectors that have higher cost structures gaining the most from cost efficiency measures.

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Germany's Industrial Breakdown - Revenue

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Italy's Industrial Breakdown - Revenue

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Total Market Capitalization Trend by Country 2018-2023

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Median Market Capitalization, Net Income, Total Cost Growth Rate (Major Countries Comparison) 2018-2023

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WHAT DOES THIS ALL MEAN IN THE CONTEXT OF MARKET CAPITALIZATION?

Usually, an upward trend in market capitalization is seen with a rise in net income, which is to be expected. However, the correlation is not perfect, as some countries show divergences where net income fluctuates while market capitalization remains relatively stable.
In the previous graphs, the total cost growth rate shows significant volatility in recent years (specifically 2020–2023), suggesting external economic factors, such as global market disruptions (one of the biggest ones being the COVID-19 pandemic), inflation, or policy changes, have influenced costs.

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COUNTRY ANALYSIS:

Countries such as China and the U.S. appear to have relatively stable trends, while others like India and France display more variability.
India is a rapidly growing economy which brings higher market fluctuation. The country also has a stock market heavily influenced by foreign investments.
France has been plagued by issues such as government policies inclusive of labor law reforms, tax changes, and pension reform protests, which create short-term uncertainty in financial markets.
These factors lead to a big difference in each country's economic resilience or market stability.
The presence of outliers in cost growth rates suggests that some countries experienced abrupt changes in expenses, possibly due to policy shifts or financial crises caused by tariffs/trade policies or other factors.

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