Europe will be hosting two major sports events in 2012: the UEFA European soccer championship in Poland and Ukraine as well as the Olympic Games in London. Consequently, with the end of 2011 approaching, there might be a current window of opportunity to invest in European manufacturers of sporting goods. Hence the objective of this report is to provide an analysis and evaluation of the recent financial performance as well as the current status of the German manufacturers Adidas and Puma.
Thereby it is primarily aimed at institutional investors such as banks, insurance companies and retirement or pension funds with a low risk appetite and a long-term investment orientation.
The document was prepared using and interpreting various instruments of fundamental financial analysis covering the company's profitability (e.g. gross, net and operating profit margins), efficiency, liquidity and other financing-related ratios. The details of the analysis and the underlying calculations can be found in section 4. Detailed explanations are provided to aid understandability of the analysis and the various financial ratios involved.
[...] 4 Financial Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Profitability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [...]
[...] . . . . . . . . . 3.1 3.2 3.3 Overview of global sporting goods industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brief introduction to Adidas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [...]
[...] . . . . . . . . . . Return on Assets (ROA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Return on Capital Employed (ROCE) . . . . . . . . . . . . . . . . . . . . . . . . . . . [...]
[...] 13 4.5 Investment Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4.5.1 4.5.2 Dividends and Dividend Cover Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . [...]
[...] 4.2.1 Cash Operating Cycle and Asset Turnover . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [...]
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