Reebok PLC, financial resources, Adidas
Reebok is a public limited company that designs, markets and sell sports accessories. Reebok Company was founded in 1983, with its headquarters located in London, United Kingdom. The company operates as a subsidiary to Adidas, AG. The product line for Reebok PLC includes footwear and apparel products various games, including a woman's category (Business Source Complete, n.d.). Reebok Company gets its finances from both the internal and external sources. The internal sources of finance comprise the company's profits, reduced inventories, delay payments to creditors, as well as tight credit control.
Reebok has three sources of funding from external sources, which include short, medium and long-term loans, assets and debenture financing. The loan stocks are also referred to as share capital, where investors are invited to purchase a number of share units they require. Reebok is listed in the stock market, with over 722 institutions owning about 87% of the 60 million ordinary shares outstanding. The company's stock value increases with its business's growth chances and are paid in interest rate. Reebok also outsource its finances from simple debentures, which are loan stocks evident by a trust deed, also known as stocks (Mclaney, 2006). The bonds entitle the holders to an eventual repayment of the stock value, in addition to the annual interest rate. The finance sources for Reebok Company are its sale of its footwear and apparel products, both locally and internationally. Reebok Company also has a number of partnerships, which provide additional financial outsourcing.
[...] Reebok Company also has a number of partnerships, which provide additional financial outsourcing. Implications of sources of finance The sources of finance come with various implications to the company's growth and expansion strategies. For instance, the amount of retained earning has a number of impacts to the dividends. Reebok Company retains profits for reinvestment, mainly to finance new investment rather than raising the dividend repayment. The management may think that retained earnings do not cost anything. The truth is that retained earnings do not result to payment of cash. [...]
[...] Broadbent, M., & Cullen, J. (2003). Managing financial resources. Oxford: Butterworth-Heinemann. Australian National Committee for Training Curriculum. (1994). Managing financial resources. Frankston, Vic: ACTRAC Products. Thomas, H. G. (2001). Managing financial resources. Philadelphia, Pa: Open University Press. [...]
[...] Capital from acquiring land may come from external sources. In this day's tight liquidity, Reebok PLC should look for short term capital so that it can provide cash flow cushion. Working with the interest rate may depend on its purposes. Reebok Company as a leading sport business should recognize the potential of added value by developing strategies that lead to access of new resources and tactically manage the risks to gain competitive advantage. The sport industry continues to grow at pace ahead of other industries. [...]
[...] Reebok Company gets its finances from both the internal and external sources. The internal sources of finance comprise the company's profits, reduced inventories, delay payments to creditors, as well as tight credit control. Sources of financing from external sources Reebok has three sources of funding from external sources, which include short, medium and long-term loans, assets and debenture financing. The loan stocks are also referred to as share capital, where investors are invited to purchase a number of share units they require. [...]
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