AdidasGroup 10ContentIntroductionHorizontalVerticalanalysisRatioRisk/StrategyanalysissummaryIntroductionlOnAugust18,1949，AdidasAGregisteredlInAugust2005,Adidasannounceda$3.8billionUSdollaracquisitionofrivalReeboklAGermanmultinationalcorporationthatdesignsandmanufacturessportsshoes,clothingandaccessories.lAdidasisthelargestsportswearmanufacturerinEuropeandthesecondbiggestintheworld,afterNike.HorizontalanalysisThischangesThischangessuggestedthatthesuggestedthatthecompanycompanydecreaseditsdecreaseditsassetsbaseduringassetsbaseduring2013andfinanced2013andfinanceditsassuminglong-itsassuminglong-termdebtrathertermdebtratherthanretainedthanretainedincome.income.Overall,grossOverall,grossprofitandnetprofitandnetincomewereup.incomewereup.GrossprofitGrossprofitincreased0.52%,increased0.52%,andnetincome,andnetincome,50.76%.Adidass50.76%.Adidassprofittrendprofittrendappearsfavorable.appearsfavorable.InthehorizontalInthehorizontalanalysisoftheanalysisofthestatementofstatementoffinancialpositionfinancialpositiontheendingtheendingretainedearningsretainedearningsincreased11.34%.increased11.34%.AsindicatedAsindicatedearlier,theearlier,thecompanyretainedcompanyretainedasignificantasignificantportionofnetportionofnetincome.income.VerticalanalysisAdidasisAdidasischoosingtokeepchoosingtokeepthescalethescalethroughthroughretentionofretentionofearningsratherearningsratherthanthroughthanthroughissuingissuingadditionaldebt.additionaldebt.AdidasappearsAdidasappearstobeatobeaprofitableprofitableenterprisethatenterprisethatisbecomingisbecomingevenmoreevenmoresuccessful.successful.RatioAssetsmanagementProfitabilityLong-termsolvencyMarketvalueAssetsmanagementCurrentRatio=20132012CurrentRatioAdidasNike2013201220131.45：11.57:13.47:1WecanknowthatithadWecanknowthatithadlowadequatecurrentlowadequatecurrentassetsrelativetoitsassetsrelativetoitscurrentliabilities.currentliabilities.Acid-TestRatioAdidasNike2013201220130.75：10.85:12.31:1TheratiohaddeclinedinTheratiohaddeclinedin2013.Whencompared2013.WhencomparedwithNikesof2.31:1,withNikesof2.31:1,Adidasacid-testratioAdidasacid-testratioseemedtoolow.seemedtoolow.Acid-TestRatio=20132012AssetsmanagementAssetsmanagementAccountsReceivableTurnover=20132012=8.29times=9.07timesAccountsReceivableTurnoverAdidasNike2013201220138.29times9.07times8.10timesAlthoughAdidasaccountsAlthoughAdidasaccountsreceivableturnoverdecreasedinreceivableturnoverdecreasedin2013,itwashigherthanNikes.2013,itwashigherthanNikes.RelativelyspeakingRelativelyspeaking， ，itmeansititmeansithasmorenetsales.hasmorenetsales.InventoryTurnoverAdidasNike2013201220132.87times3.12times4.29timesGenerally,thelargertheGenerally,thelargertheinventoryturnover,theinventoryturnover,thelesstimeacompanyhaslesstimeacompanyhasstoreinventoryandthestoreinventoryandthelessthechanceoflessthechanceofinventoryobsolescence.inventoryobsolescence.InventoryTurnover=20132012AssetsmanagementAdidasmadeastrategythatAdidasmadeastrategythatallowedretailerstoplaceanorderfor5allowedretailerstoplaceanorderfor5、6 6monthsaheadofscheduletopredeterminemonthsaheadofscheduletopredeterminethetransportguaranteeandguaranteedthetransportguaranteeandguaranteed90%orderwillbetransportedtothematthe90%orderwillbetransportedtothematthetimeofdetermination.timeofdetermination.ThisstrategycansuccessfullyreducedThisstrategycansuccessfullyreducedinventorytoaminimum,andamplifytheinventorytoaminimum,andamplifytheinventoryturnover.inventoryturnover.RatioAssetsmanagementProfitabilityLong-termsolvencyMarketvalue profitabilityF=abcROE=NetprofitmargintotalassetturnoverequitymultiplierAffectofa:(a1-a0)b0c0(5.45-3.52)1.302.16=5.42Affectofb:a1(b1-b0)c05.45(1.25-1.30)2.16=-0.589Affectofc:a1b1(c1-c0)5.451.25(2.10-2.16)=-0.409RatioAssetsmanagementProfitabilityLong-termsolvencyMarketvalueMarketvalueEarningsperShare=EarningsperShare=EarningsperShareAdidasNike2013201220134.013.782.75AdidasearningperAdidasearningpersharehadincreasedinsharehadincreasedin2013andishigherthan2013andishigherthanNikes.Nikes.NetincomepreferencedividendsNetincomepreferencedividendsWeighted-AverageordinarysharesoutstandingWeighted-AverageordinarysharesoutstandingPrice-EarningsRatioAdidasNike20132012201323.10times17.81times22.90timesAdidasP-EratiohadAdidasP-Eratiohadincreasedin2013andisincreasedin2013andishigherthanNikestoo.SohigherthanNikestoo.SoinvestorsweremoreinvestorsweremoreconfidentforfuturethanconfidentforfuturethanthoseforNike.thoseforNike.Price-EarningsRatio=20132012MarketvalueRatioAssetsmanagementProfitabilityLong-termsolvencyMarketvalueLong-termsolvencyDebttoTotalAssetsRatio=20132012DebttoTotalAssetsRatioAdidasNike20132012201352.75%54.59%36.56%AlthoughAdidasdebttoAlthoughAdidasdebttototalassetsratiohadtotalassetsratiohaddeclinedin2013,itwasdeclinedin2013,itwasstillhigherthanNike.stillhigherthanNike.TimesInterestEarnedAdidas2013201216.53times9.77timesTherejustAdidasTherejustAdidastimesinterestearned.timesinterestearned.IthaddecreasedinIthaddecreasedin2013.2013.TimesInterestEarned=20132012Long-termsolvencyRisksanalysisStrategyanalysisUsingconservativemarketexpansionpolicyAimathigh-endmarket(高端市场）ChangetheSinglesaleschannelsSummaryuAdidasisapotentialandprofitablecompany.Adidasisapotentialandprofitablecompany.uImprovethechain-value,lowerthecostImprovethechain-value,lowerthecost,Strengthentheproductsadd-value.,Strengthentheproductsadd-value.uEnhancemarketshare.Enhancemarketshare.uItsdebtpayingabilityispoor.OptimizeItsdebtpayingabilityispoor.Optimizethecapitalandexpenditurestructure.thecapitalandexpenditurestructure.