阿迪达斯财务分析课件.ppt

1、AdidasGroup 10Content Introduction HorizontalVertical analysis Ratio Risk/Strategy analysissummaryIntroduction l On August 18, 1949 ，Adidas AG registeredl InAugust2005,Adidasannounceda$3.8 billionUSdollaracquisitionofrivalReebok l A Germanmultinational corporationthat designs and manufactures sports

2、 shoes, clothing and accessories.l Adidas is the largestsportswear manufacturer in Europe and the second biggest in the world, afterNike.Horizontal analysisThis changes suggested This changes suggested that the company that the company decreased its assets base decreased its assets base during 2013

3、and financed during 2013 and financed its assuming long-term its assuming long-term debt rather than retained debt rather than retained income .income .Overall, gross profit and Overall, gross profit and net income were up. net income were up. Gross profit increased Gross profit increased 0.52%, and

4、 net income, 0.52%, and net income, 50.76%. Adidass profit 50.76%. Adidass profit trend appears favorable.trend appears favorable.In the horizontal analysis In the horizontal analysis of the statement of of the statement of financial position the financial position the ending retained earnings endin

5、g retained earnings increased 11.34%. As increased 11.34%. As indicated earlier, the indicated earlier, the company retained a company retained a significant portion of net significant portion of net income.income.Vertical analysis Adidas is choosing to Adidas is choosing to keep the scale through k

6、eep the scale through retention of earnings retention of earnings rather than through rather than through issuing additional debt.issuing additional debt.Adidas appears to be Adidas appears to be a profitable a profitable enterprise that is enterprise that is becoming even more becoming even more su

7、ccessful.successful.RatioAssets managementProfitability Long-term solvencyMarket valueAssets managementCurrent Ratio =20132012Current Ratio Current Ratio AdidasNike2013201220131.45：11.57:13.47:1We can know that it had low We can know that it had low adequate current assets relative to adequate curre

8、nt assets relative to its current liabilities.its current liabilities.Acid-Test Ratio Acid-Test Ratio AdidasNike2013201220130.75：10.85:12.31:1The ratio had declined in 2013. The ratio had declined in 2013. When compared with Nikes of When compared with Nikes of 2.31:1, Adidas acid-test ratio 2.31:1,

9、 Adidas acid-test ratio seemed too low.seemed too low.Acid-Test Ratio =20132012Assets managementAssets managementAccounts Receivable Turnover=20132012=8.29 times=9.07 timesAccounts Receivable TurnoverAccounts Receivable TurnoverAdidasNike2013201220138.29 times9.07 times8.10 timesAlthough Adidas acco

10、unts receivable turnover Although Adidas accounts receivable turnover decreased in 2013, it was higher than Nikes. decreased in 2013, it was higher than Nikes. Relatively speakingRelatively speaking，it means it has more net it means it has more net sales. sales. Inventory TurnoverInventory TurnoverA

11、didasNike2013201220132.87times3.12 times4.29 timesGenerally, the larger the Generally, the larger the inventory turnover, the less time inventory turnover, the less time a company has store inventory a company has store inventory and the less the chance of and the less the chance of inventory obsole

12、scence.inventory obsolescence.Inventory Turnover=20132012Assets managementAdidas made a strategy that allowed retailers to place an Adidas made a strategy that allowed retailers to place an order for 5 order for 5 、6 months ahead of schedule to pre determine 6 months ahead of schedule to pre determi

13、ne the transport guarantee and guaranteed 90%order will be the transport guarantee and guaranteed 90%order will be transported to them at the time of determination .transported to them at the time of determination .This strategy can successfully reduced inventory to a This strategy can successfully

14、reduced inventory to a minimum, and amplify the inventory turnover.minimum, and amplify the inventory turnover.RatioAssets managementProfitability Long-term solvencyMarket valueprofitability F = a b c ROE = Net profit margin total asset turnover equity multiplier Affect of a : (a1-a0) b0 c0 ( 5.45-3

15、.52 ) 1.30 2.16 = 5.42 Affect of b : a1 ( b1-b0 ) c0 5.45 ( 1.25-1.30 )2.16 = -0.589 Affect of c : a1 b1 ( c1-c0 ) 5.45 1.25 (2.10- 2.16) = -0.409 RatioAssets managementProfitability Long-term solvencyMarket valueMarket valueEarnings per Share=Earnings per Share=Earnings per ShareEarnings per ShareA

16、didasNike2013201220134.013.782.75Adidas earning per share had Adidas earning per share had increased in 2013 and is higher increased in 2013 and is higher than Nikes.than Nikes.Net income preference dividendsNet income preference dividendsWeighted-Average ordinary shares outstandingWeighted-Average

17、ordinary shares outstandingPrice-Earnings RatioPrice-Earnings RatioAdidasNike20132012201323.10 times17.81 times22.90 timesAdidas P-E ratio had increased in Adidas P-E ratio had increased in 2013 and is higher than Nikes too. 2013 and is higher than Nikes too. So investors were more confident So inve

18、stors were more confident for future than those for Nike.for future than those for Nike.Price-Earnings Ratio=20132012Market valueRatioAssets managementProfitability Long-term solvencyMarket valueLong-term solvencyDebt to Total Assets Ratio=20132012Debt to Total Assets RatioDebt to Total Assets Ratio

19、AdidasNike20132012201352.75%54.59%36.56%Although Adidas debt to total Although Adidas debt to total assets ratio had declined in 2013, assets ratio had declined in 2013, it was still higher than Nike.it was still higher than Nike.Times Interest EarnedTimes Interest EarnedAdidas2013201216.53 times9.7

20、7 timesThere just Adidas times There just Adidas times interest earned. It had interest earned. It had decreased in 2013.decreased in 2013.Times Interest Earned=20132012Long-term solvencyRisks analysisIf he keeps the high debt， his profit will be lower than before. And maybe the investor will choose

21、 another company. Adidas will meet the dilemma of developmentHigher interest earned means lower risks. So Adidas does well in this way. Strategy analysisUsingconservativemarketexpansion policyAim at high-end market (高端市场）Change the Single sales channels Summary uAdidas is a potential and profitable

22、company.Adidas is a potential and profitable company.u Improve the chain-value , lower the cost ,Strengthen the products Improve the chain-value , lower the cost ,Strengthen the products add-value . add-value . uEnhance market share .Enhance market share .uIts debt paying ability is poor. Optimize the capital and Its debt paying ability is poor. Optimize the capital and expenditure structure. expenditure structure.