Analyse

MEMORANDUM The Department of Business at St. Gregory's University To:Mayda Shorney, Ph.D., CPA From: AMINADOU OUATTARA Date:10/25/2012 Re:DTE's Company analysis The company that I choose is DTE Energy Company which provides gas and electric utility services in Michigan. Its website address is www.dteenergy.com. I choose this company because there are some countries in Africa like Morocco, Tunisia, etc which have many energy resources but still don't know how to use it to develop Africa (there are some parts in Africa which still don't have electricity) so they sell it to others continents. Since I am African, I want to contribute to the development of my continent, my dream is to create and manage a company where we can manage our own energy. After analyzing my company I understand better how companies work, where they get their money from, how the industry affect them, what criteria to look at before investing in a company. By analysis DTE vs. CMS, I can base on the financial statement analysis to say that it is better to invest in CMS Energy Corp. Also, by comparing we see that it is also better to not invest in DTE Energy Company. Here is my company analysis on DTE Energy Company. Introduction Through this company analysis, different aspects of DTE Energy Company will be cover in a financial viewpoint. I will firstly give a brief description of DTE Energy Company, after that analyze the industry in which it operates, describe its major market, analyze its financial statement with a spread sheet for the financial analysis, and finally I will determine if I will invest in this company or not. Company, Industry The ticker symbol for DTE Energy Co. is DTE on the New York Stock Exchange (NYSE). The company was founded in 1995. The company is headquartered in Detroit, Michigan and it operates as an electric and natural gas utility company in Michigan. DTE Energy Co. concentrates on two segments which are electric/gas utilities and non-utility businesses. Those two segments are DTE's primarily source of revenue. DTE does not have another source of revenue. Industry Analysis DTE Energy have a higher barrier sector does not see immediate threats in terms of new entrants. It has recently got two new entrants which are Tesla Motors Inc. (TSLA) and the Electric Power Research Institute (EPRI). The buyers of DTE Energy are corporate, corporate staff services for our electric utility, distributions, commodities and services for our electric utility, energy gas, energy resources, commodities and services for our non-utility business facilities, fossil generation, commodities and services for our fossil-fueled power plants, nuclear generation, commodities and services for our nuclear-fueled power plant, materials and logistics. DTE Energy Services serves customers in 13 states. DTE Energy is a holder. DTE Energy Supply delivers consistent and cost successful gas supplies to customers in the Midwest. Their capabilities are supported by world-class supply sourcing and management expertise, and an extensive collection of assets and resources. They provide gas supplies to over 100,000 Ohio households and businesses in the Dominion East Ohio Gas and Vectren Energy Delivery of Ohio services territories. DTE Energy suppliers also provide reliable power energy in the Midwest and Northeast. DTE Energy has very few suppliers and substitutes. DTE Energy's direct competitors are CMS Energy Corp., Integrys Energy Group, Inc., Wisconsin Energy Corp., and Electric Utilities. In my company analysis, I will focus on CMS Energy Corporation. CMS Energy Corporation also provides electric and natural gas utility in Michigan. Its business strategy is focused primarily on its principal subsidiary and engaged in independent power generation in several states. The company has been found in 1886. EnerBank USA, a wholly owned subsidiary of CMS Energy Corp., is FDIC insured and headquartered in Salt Lake City in Utah. Major Market DTE Energy operates in more than one business which is energy, gas and non-utilities business but it is more focus on energy and gas. Detroit Edison supports the development of plug-in electric vehicles. The company energy utility segment operates approximately 671 distribution substations and approximately 428,300 line transformers, and supplies electricity to 2.1 million residential, commercial, and industrial customers. The company gas utility segment has about 19,000 miles of distribution mains, 1,175,000 of services pipelines, and 1,309,000 of active meters, and owns approximately 2,000 miles of transmission pipelines. This segment supplies natural gas to approximately 1.2 million residential, commercial, and industrial customers throughout Michigan, 17,000 customers in Adrian, Michigan. DTE Energy Company owns and operates approximately 671 distribution substations and 428,300 line transformers. Strategies The Strategy & Corporate Development group works with all of DTE's businesses to address the complex challenges facing the energy industry today. Associates play a critical role within multi-disciplinary teams engaged in strategic initiatives. Specific responsibilities could include: identifying, screening and evaluating acquisition targets; working with senior executives to understand industry trends and define DTE's strategy; assessing investment opportunities in the clean energy space; analyzing the value and the risks of major capital investments; assessing the impact of changes in the global natural gas market; identifying new business opportunities to grow our non-regulated portfolio. DTE Energy offers a highly competitive compensation and benefits package. Financial Statement Analysis Ratio analysis: DTE Energy Company CMS Energy Corporation Fiscal Year 12/31/11 12/31/10 12/31/09 12/31/08 12/31/11 12/31/10 12/31/09 12/31/08 Cash flows and liquidity:                 Cash from operating activities $ 2,008 $ 1,825 $ 1,819 $ 1,570 $ 1,169 $ 959 $ 853 $ 555 Cash from investing activities $ (1,560) $ (1,226) $ (1,064) $ (1,523) $ (1,058) $ (1,003) $ (935) $ (839) Cash from financing activities $ (445) $ (586) $ (789) $ (84) $ (199) $ 202 $ (35) $ 147 Net change in Cash $ 3 $ 13