1 Introduction
In recent years, same people pay more attention to their health, so the products about health and sport are more popular than before. Adidas as one of the biggest sport product companies in the world, many people think that Adidas is a very good option for investors. As we know, the stock price of a company is related to the operating performance and financial position of this company. For example, if a company can sale more and more products, we can believe that the stock price of this company will increase in the future. So in this report, we will analysis Adidas Company in these two aspects. In order to analysis this firm, we collect financial data of Adidas from 2007 to 2016.
2 Company performances
(1) Earning per share …show more content…
Return on equity is very similar with earning per share; both of them are being used to describe the profitability of company. Return on equity is defined as the net income divided by the average shareholder’s equity. From the data of financial statement of Adidas Company, it is obviously that from 2009 to 2016, there is a sustainable growth in return on equity. As the same with EPS, we can not only look at the data, we have to look deeper behind it because they can be affected by financial activity. For example, if one company plan to issue more shares to collect more money, the return on equity of this company will be lower. In contrast, if this company wants to buy back the outstanding shares, the return on equity of this company will be higher. Although these financial activities unrelated with operation, the data of ROE …show more content…
The current ratio is current assets divided by current liabilities. It is often be used to describe the ability of one company to pay its short term liabilities. From the definition, we can find that higher current ratio means a higher ability to pay back liabilities, because the company with higher current ratio have more current asset. However, it is not means that a high current ratio is always right. As we know there is difference between different industries and different industries have different current ratio. For example, it is obviously that the current ratio of retail industry different with that of airline
In recent years, same people pay more attention to their health, so the products about health and sport are more popular than before. Adidas as one of the biggest sport product companies in the world, many people think that Adidas is a very good option for investors. As we know, the stock price of a company is related to the operating performance and financial position of this company. For example, if a company can sale more and more products, we can believe that the stock price of this company will increase in the future. So in this report, we will analysis Adidas Company in these two aspects. In order to analysis this firm, we collect financial data of Adidas from 2007 to 2016.
2 Company performances
(1) Earning per share …show more content…
Return on equity is very similar with earning per share; both of them are being used to describe the profitability of company. Return on equity is defined as the net income divided by the average shareholder’s equity. From the data of financial statement of Adidas Company, it is obviously that from 2009 to 2016, there is a sustainable growth in return on equity. As the same with EPS, we can not only look at the data, we have to look deeper behind it because they can be affected by financial activity. For example, if one company plan to issue more shares to collect more money, the return on equity of this company will be lower. In contrast, if this company wants to buy back the outstanding shares, the return on equity of this company will be higher. Although these financial activities unrelated with operation, the data of ROE …show more content…
The current ratio is current assets divided by current liabilities. It is often be used to describe the ability of one company to pay its short term liabilities. From the definition, we can find that higher current ratio means a higher ability to pay back liabilities, because the company with higher current ratio have more current asset. However, it is not means that a high current ratio is always right. As we know there is difference between different industries and different industries have different current ratio. For example, it is obviously that the current ratio of retail industry different with that of airline