1、Adidas,Group 10,Content,Introduction,Horizontal Vertical analysis,Ratio,Risk/Strategy analysis,summary,Introduction,On August 18, 1949 ，Adidas AG registered,InAugust2005,Adidasannounceda$3.8 billionUSdollaracquisitionofrivalReebok,A Germanmultinational corporationthat designs and manufactures sports

2、 shoes, clothing and accessories.,Adidas is the largestsportswear manufacturer in Europe and the second biggest in the world, afterNike.,Horizontal analysis,This changes suggested that the company decreased its assets base during 2013 and financed its assuming long-term debt rather than retained inc

3、ome .,Overall, gross profit and net income were up. Gross profit increased 0.52%, and net income, 50.76%. Adidass profit trend appears favorable.,In the horizontal analysis of the statement of financial position the ending retained earnings increased 11.34%. As indicated earlier, the company retaine

4、d a significant portion of net income.,Vertical analysis,Adidas is choosing to keep the scale through retention of earnings rather than through issuing additional debt.,Adidas appears to be a profitable enterprise that is becoming even more successful.,Ratio,Assets management,Profitability,Long-term

5、 solvency,Market value,Assets management,Current Ratio =,2013,2012,We can know that it had low adequate current assets relative to its current liabilities.,The ratio had declined in 2013. When compared with Nikes of 2.31:1, Adidas acid-test ratio seemed too low.,Acid-Test Ratio =,2013,2012,Assets ma

6、nagement,Assets management,Accounts Receivable Turnover=,2013,2012,=8.29 times,=9.07 times,Although Adidas accounts receivable turnover decreased in 2013, it was higher than Nikes. Relatively speaking，it means it has more net sales.,Generally, the larger the inventory turnover, the less time a compa

7、ny has store inventory and the less the chance of inventory obsolescence.,Inventory Turnover=,2013,2012,Assets management,Adidas made a strategy that allowedretailerstoplace an orderfor 5、6 months ahead of schedule topre determine thetransportguarantee andguaranteed 90%order will be transported to t

8、hem at the time of determination.,This strategycan successfullyreduced inventoryto a minimum,and amplify the inventory turnover.,Ratio,Assets management,Profitability,Long-term solvency,Market value,Equity Multiplier= Average Assets shareholders Equity,Return on Assets = Net Income Average Assets,As

9、set Turnover = Net Sales Average Assets,Profit margin = Net Income Net Sales,profitability,F = a b c ROE = Net profit margin total asset turnover equity multiplier,Affect of a : (a1-a0) b0 c0 ( 5.45-3.52 ) 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 :

10、 a1 b1 ( c1-c0 ) 5.45 1.25 (2.10- 2.16) = -0.409 ,Ratio,Assets management,Profitability,Long-term solvency,Market value,Market value,Earnings per Share=,Adidas earning per share had increased in 2013 and is higher than Nikes.,Net income preference dividends,Weighted-Average ordinary shares outstandi

11、ng,Adidas P-E ratio had increased in 2013 and is higher than Nikes too. So investors were more confident for future than those for Nike.,Price-Earnings Ratio=,2013,2012,Market value,Ratio,Assets management,Profitability,Long-term solvency,Market value,Long-term solvency,Debt to Total Assets Ratio=,2

12、013,2012,Although Adidas debt to total assets ratio had declined in 2013, it was still higher than Nike.,There just Adidas times interest earned. It had decreased in 2013.,Times Interest Earned=,2013,2012,Long-term solvency,Risks analysis,Strategy analysis,Usingconservativemarketexpansion policy,Aim at high-end market (高端市場）,Change the Single sales channels,Summary,Adidas is a potential and profitab