Strategic Financial Management

Topics: Generally Accepted Accounting Principles, Cash flow, Depreciation Pages: 4 (648 words) Published: May 16, 2013
MBA FT 2012-2013
STRATEGIC FINANCIAL MANAGEMENT
Group Assignment

Student No.

Company Name: ADIDAS GROUP
Company website: http://www.adidas-group.com/en/home/welcome.aspx  Company annual report 2011:
http://adidas-group.corporate-publications.com/2011/gb/files/pdf/en/adidas_Group_AR2011.pdf

Part 1: Quick Scan Financial Position
BALANCE SHEET|
 | 2011| 2010|  | 2011| 2010|
| Million EUR| Million EUR| | Million EUR| Million EUR| Assets| 4945| 4738| Equity| 5331| 4623|
Working Capital| 2154| 1972| Non-Current Liabilities| 1768| 2087| Total| 7099 | 6710 | Total| 7099| 6710|

PROFIT AND LOSS ACCOUNT|
| 2011| 2010|
| Million EUR| Million EUR|
Net Turnover| 13344| 11990|
Expenses| 12524| 11306|
Operating Profit Before Depreciation| 820| 684|
Depreciation| 253| 270|
Operating Profit| 567| 414|
Interest Paid| 113| 111|
Profit After Interest| 454| 303|
Other Income| -84| -88|
Profit Before Income Tax| 370| 215|
Mainly Taxes| 257| 238|
Net Profit| 113| -23|

CASH FLOW STATEMENT|
 | 2011| 2010|
| Million EUR| Million EUR|
Cash Position(JANUARY 1)| 1156| 775|
CASH FLOW|  |  |
Operating| 792| 894|
Investing| -566| -330|
Fiancing| -491| -238|
Net Cash Flow| 891| 1101|
 |
Cash Position Per End 2011| 906| 1156|

RATIO| 2011| 2010|
solvability | 75.10%| 68.90%|
current ratio| 150.32%| 150.46%|
ROA| 7.99%| 6.17%|
ROE| 2.12%| -0.50%|

Gearing: ROE is less than ROA, which indicates that the shareholders' return less than the total company profit rate. When ROE decrease the interest to the banks is higher. ROE raised from 2010 to 2011, which means the interest to the bank, is decreasing. The financial leverage function in 2011 increased more obviously than that in 2010.

FINANCIAL KEY DRIVER|
 | 2011| %| 2010| %|
| Million EUR|  | Million EUR|  |
Revenue|...
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