Case Study Of Harley Davidson

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1. Describe the company’s business. Is management pursuing strategies that you think will add value to shareholder health.

Harley-Davidson manufactures and sell motorcycles. Featuring innovative design, superior quality and the ability to personalize, brings custom, cruiser and touring motorcycles to the consumer. Harley-Davidson also manufactures and sells motorcycle service parts, riding apparel and accessories for riders, passengers and riding enthusiasts. Harley-Davidson has a financial services division that offers insurance, financing, extend service, protection plans, and credit card programs. Harley-Davidson’s ten-year objectives include:
• Increase ridership in the U.S. by two million
• Grow international business to 50% of …show more content…
Harley-Davidson also has a Harley owners group. With different types of memberships, members can enjoy numerous activities and experiences. Harley-Davidson has financial services, offering financing and insurance programs. Harley-Davidson offers motorcycle rentals, allowing riders to try out different types of motorcycles before they purchase or for a vacation time ride when they are away from home. Perhaps Harley-Davidson’s biggest advantage that it has over its competition is Harley-Davidson branding and name recognition. Celebrating 115 years of riding, Harley-Davidson has a rich deep-rooted tradition and …show more content…
Starting with the current ratio, Harley-Davidson has a current ratio of 1.35. Although a current ratio is considered acceptable if its above 1, Harley-Davidson’s current ratio has been trending downward the past five years.

Harley-Davidson has a quick ratio of 1.17 and a PEG ratio of 1.87 (5 year expected).
Sales growth has been experiencing a downward trend over the past five years.
The gross profit margin for Harley-Davidson is 36.72% with a net profit margin of 10.14% higher than leading competitors.

2016 Annual Sales (Hoover's Inc., 2017) 2016 Net Profit Margin (Hoover's Inc., 2017) 4. Evaluate the capital structure of Harley-Davidson, does Harley-Davidson have the financial flexibility to increase debt.

According to MarketWatch Harley-Davidson has a capital structure as follows:
Total Debt to Total Equity 354.53
Total Debt to Total Capital

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