ALBA_Financial Accounting_Project 3 - Athletic Apparel and Shoes Industry Adidas Puma Skechers Ratio analysis A report prepared for the course Financial

ALBA_Financial Accounting_Project 3 - Athletic Apparel and...

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Athletic Apparel and Shoes Industry: Adidas, Puma, Skechers Ratio analysis A report prepared for the course “Financial Accounting” Instructor: Dr. Stylianos Kotsias November 17, 2015 [1]
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The contemporary athletic apparel and shoes industry is a perfectly competitive one; one of the main characteristics of perfect competition is the absence of any kind of restrictions for a firm to enter or exit the market. At the same time, however, in order for a firm to manage to survive in a perfectly competitive market, it should take into serious consideration the financial position of its competitive firms. The financial statements of a company do offer valuable financial information both to their internal and external users. Through the use of ratios, they can be utilized in order for significant comparisons among companies that develop their activities in the same industry, like the athletic apparel and shoes industry, to be made. The purpose of this report is to make comparisons among some representative ratios for three different companies: Adidas (which will be used as a ‘benchmark’), Puma, and Skechers. Emphasis will be given to the indicators of i) liquidity, ii) profitability, iii) financial risk, iv) operating asset management, and v) shareholders’ return. To begin with i) liquidity, the ratios that fall under this category are used in order to assess a company’s ability to respond to the financial obligations it has.
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  • Fall '15
  • Dr. Kotsias
  • Financial Accounting, Ratio, Profit margin, Generally Accepted Accounting Principles

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