harolds sporting goods
1) Profit margin = Net income / Sales
2007 = 193200 /4269871 = 5%
2008 = 243100 / 4483360 = 5%
Return on assets (investment)
a. Total asset / total assets
b. Net Income / Sales x Sales /Total assets 2007 = 193200 / 3170200 = 6% b. 1930200 / 4269871 X 4269871/3170200 =5%x1.35=6.75% 2008 = 243100 / 3360650 =7% b. 243100/4483860 X 4483360/3360050= 5%x 1.33= 6.65% 2009 = 200318/ 3510110 = 6% b.200318/5021643 X 5021643/3510110=4%X 1.43=5.72%
Return on equity = Net Income/ Total assets
a) Net income/Stockholders equity b). Return on assets/ (1- debt/asset) 2007 = 193200/ 1204600 = 16% b. 0.006/ (1-1965600/3170200) = 15.79 2008= 243100/1310655 = 19% b .7 %/( 1-20499953/3360650) = 17.95 2009 = 200318/ 1333800 = 15% b.6 %/( 1-2176310/3510110) = 15.79
2. In analyzing the profitability of ratios for Harrods’s Sporting Goods, we observed that for the years 2007 and 2008 there were a higher return on sales dollars of 5% when in comparison to that of the industry average of 4.51 %. In 2009, Harrods’s Sporting Goods experienced a slightly decrease on its ROS with 4% below the industrial average of 4.5%' We also noticed that, Harrods’s Sporting Goods ROA for the years, 2007,2008,2009, was good as they were able to obtained an increase(6%,7% and 6%) above the industry average of 5.10% ,meaning they had a rapid turnover. With this information, the industry ratio produced a turnover on assets of 1.33 times in 2009. On the other hand, Harrods’s Sporting Goods generated a 1.43 times in2009 according to its ratio of sales to total assets in the same year. In conclusion, the fact that Harrods Sporting Goods produced a better average than the industry ratio in terms of sales per dollar of assets puts them in a better position to stay in businesses.
3. Profitabilty for ratios for 2009
a) Profit
2007 = 193200 /4269871 = 5%
2008 = 243100 / 4483360 = 5%
Return on assets (investment)
a. Total asset / total assets
b. Net Income / Sales x Sales /Total assets 2007 = 193200 / 3170200 = 6% b. 1930200 / 4269871 X 4269871/3170200 =5%x1.35=6.75% 2008 = 243100 / 3360650 =7% b. 243100/4483860 X 4483360/3360050= 5%x 1.33= 6.65% 2009 = 200318/ 3510110 = 6% b.200318/5021643 X 5021643/3510110=4%X 1.43=5.72%
Return on equity = Net Income/ Total assets
a) Net income/Stockholders equity b). Return on assets/ (1- debt/asset) 2007 = 193200/ 1204600 = 16% b. 0.006/ (1-1965600/3170200) = 15.79 2008= 243100/1310655 = 19% b .7 %/( 1-20499953/3360650) = 17.95 2009 = 200318/ 1333800 = 15% b.6 %/( 1-2176310/3510110) = 15.79
2. In analyzing the profitability of ratios for Harrods’s Sporting Goods, we observed that for the years 2007 and 2008 there were a higher return on sales dollars of 5% when in comparison to that of the industry average of 4.51 %. In 2009, Harrods’s Sporting Goods experienced a slightly decrease on its ROS with 4% below the industrial average of 4.5%' We also noticed that, Harrods’s Sporting Goods ROA for the years, 2007,2008,2009, was good as they were able to obtained an increase(6%,7% and 6%) above the industry average of 5.10% ,meaning they had a rapid turnover. With this information, the industry ratio produced a turnover on assets of 1.33 times in 2009. On the other hand, Harrods’s Sporting Goods generated a 1.43 times in2009 according to its ratio of sales to total assets in the same year. In conclusion, the fact that Harrods Sporting Goods produced a better average than the industry ratio in terms of sales per dollar of assets puts them in a better position to stay in businesses.
3. Profitabilty for ratios for 2009
a) Profit