Currency Studies

Only available on StudyMode
  • Download(s) : 124
  • Published : January 21, 2013
Open Document
Text Preview
Assurance of Learning Exercise 4A
Adidas’ Income Statement for 2009
Currency in
Millions of Euros| :| | Dec 31
2009
EUR| | | |
Revenues| | 10,381.0| | | |
TOTAL REVENUES| | 10,381.0| | | |
Cost of Goods Sold| | 5,669.0| | | |
GROSS PROFIT| | 4,712.0| | | |
Selling General & Admin Expenses, Total| | 1,376.0| | | | Other Operating Expenses| | 2,796.0| | | |
OTHER OPERATING EXPENSES, TOTAL| | 4,172.0| | | |
OPERATING INCOME| | 540.0| | | |
Interest Expense| | -138.0| | | |
Interest and Investment Income| | 16.0| | | |
Other Non-Operating Expenses, Total| | -28.0| | | |
Other Non-Operating Income (Expenses)| | -3.0| | | |
Impairment of Goodwill| | --| | | |
Gain (Loss) on Sale of Assets| | 3.0| | | |
Other Unusual Items, Total| | -35.0| | | |
EBT, INCLUDING UNUSUAL ITEMS| | 358.0| | | |
Income Tax Expense| | 113.0| | | |
Minority Interest in Earnings| | --| | | |
Earnings from Continuing Operations| | 245.0| | | |
NET INCOME| | 245.0| | | |
NET INCOME TO COMMON INCLUDING EXTRA ITEMS| | 245.0| | | | NET INCOME TO COMMON EXCLUDING EXTRA ITEMS| | 245.0| | | |

Adidas’ Balance Sheet for 2009
Currency in
Millions of Euros| | Dec 31
2009
EUR|
Assets|  |
Cash and Equivalents| 775.0|
Short-Term Investments| 58.0|
Trading Asset Securities| 75.0|
TOTAL CASH AND SHORT TERM INVESTMENTS| 908.0|
Accounts Receivable| 1,429.0|
Other Receivables| 169.0|
Inventory| 1,471.0|
Prepaid Expenses| 208.0|
Other Current Assets| 300.0|
TOTAL CURRENT ASSETS| 4,485.0|
NET PROPERTY PLANT AND EQUIPMENT| 723.0|
Long-Term Investments| 107.0|
Goodwill| 1,478.0|
Other Intangibles| 1,502.0|
Other Long-Term Assets| 168.0|
TOTAL ASSETS| 8,875.0|
|  |
LIABILITIES & EQUITY|  |
Accounts Payable| 1,166.0|
Accrued Expenses| 777.0|
Current Portion of Long-Term Debt/Capital Lease| 201.0|
Other Current Liabilities| 471.0|
TOTAL CURRENT LIABILITIES| 2,836.0|
Long-Term Debt| 1,579.0|
Capital Leases| 2.0|
Minority Interest| 5.0|
Other Liabilities, Total| 682.0|
TOTAL LIABILITIES| 5,099.0|
Common Stock| 209.0|
Additional Paid in Capital| 722.0|
Retained Earnings| 3,350.0|
Comprehensive Income and Other| -510.0|
TOTAL COMMON EQUITY| 3,771.0|
TOTAL EQUITY| 3,776.0|
TOTAL LIABILITIES AND EQUITY| 8,875.0|

Ratio| Formula(amounts in millions)| Strength/Weakness|
Current Ratio| 4,4852,836 = 1.58x| Strength|
Quick Ratio| 4,485-1,4712,836 = 1.06x| Weakness| Debt-To-Total Assets Ratio| 5,0998,875 = .57x| Weakness| Debt-To-Equity Ratio| 5,0993,776 =1.35x| Strength|
Long Term Debt to Equity Ratio| 2,2633,776 =.60x| Strength| Times Interest Earned Ratio| 358113 = 3.17x| Weakness|
Inventory Turnover| 10,3815,669 = 1.83x| Strength|
Fixed Assets Turnover| 10,381 723 =14.36x| Strength| Total Assets Turnover| 10,381 8,875 = 1.17x| Strength| Accounts Receivable Turnover| 10,381 1,429 = 7.26xx| Strength| Average Collection Period| 1.429 10381/365 = 50.24 days| Strength| Gross Profit Margin| 4,71210,381 = .45 or 45%| Weakness| Operating Profit Margin| 54010,381 = .05 or 5%| Weakness| Net profit margin| 24510,381 = .02 or 2%| Weakness|

Return on total assets| 2458875 = 2.76%| Weakness|
Return on Equity| 2453776 =6.49%| Weakness|
Earnings per share| 245209 = 1.17| Weakness|
Sales Growth Ratio| From 2008 to 2009 = -4.03%| Weakness| Net Income Growth Ratio| From 2008 to 2009 = -162.04%| Weakness| Earnings per share growth ratio| From 2008 to 2009 = -182.84%| Weakness|

Assurance of Learning Exercise 4B

Reebok
Reebok International Limited, a subsidiary of the German company Adidas since 2005 is a producer...
tracking img