ACCT PROJECT (backup) - Executive Summary This report was...

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Executive Summary This report was assigned to give students the opportunity to display what they have learned in this accounting course (ACCT222). We decided to challenge ourselves by taking on the evaluation and analysis of previous and current profitability, liability and financial stability of the companies Adidas, Polo Ralph Lauren, and Nike. These companies sell various but similar products ranging from Shoes to clothing, all at completely different prices. We provided you with a comprehensive financial performance analysis for each company to compare, and recognize to whom would be the best investment. The methods of analysis that were used throughout the report include trend analyses, to help better understand the company’s performance and be able to predict how the company’s operations might do in the future. We also included each company’s financial ratio such as profit margin, debt to asset, and current ratios. Some other calculations that were made include rates of return on assets and asset turnover, and also return on Shareholders’ Equity and Total Assets. All those different calculations can be found in the report along with the formulas used for each. Overall, the data analyzed showed that Polo Ralph Lauren and Nike’s ratios were not significantly different from one another, but when it comes to their financial activity their patterns over the years are distinct. As we analyzed Adidas we’ve noticed that their ratios are slightly different from the other two corporations; however we believe that most of Adidas sales may not be as high as Ralph Lauren and Nike, because these two corporations are really popular in society at the moment, which means the demand for their products may be higher. It may also be because of the range of products the company’s sale. Ralph Lauren and Nike May receive higher profit with their apparel and accessories versus Adidas may stimulate a higher income from sports related goods rather and not apparel. We will discuss these findings throughout our financial report.
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Background/History Polo Ralph Lauren Dated back to 1967 Polo Ralph Lauren, an upscale company and fashion retailer was founded by designer Ralph Lauren (Wikipedia, 2013). Ralph Lauren has managed to expand the polo brand selling products such as apparel, home, accessories and fragrances. Over the years Ralph Lauren's reputation and image have been continuously developing across an expanding number of products, brands and international markets. The company boomed in the 1980s when Ralph Lauren decided to associate his clothing with sophistication, or what we may consider the “American way of life”. Menswear accounted for 42 percent of 2003 sales of $2.44 billion (Funding universe, 2003). Womenswear was the next largest segment (25 percent), followed by fragrances, accessories, children's, and home (Funding universe, 2003). The company licenses nearly 300 manufacturers and 100 retail outlets around the world. RL also runs 240 of its own stores in the United States (Funding universe, 2003).
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