Interpretation Of Financial Ratios Of Adidas Company
Question
Financial Ratios
2013
2012
2011
2010
Current ratios
1.45
1.57
1.46
0.15
Quick ratios
0.89
2.45
0.88
0.96
Solvency
2013
2012
2011
2010
Debt/Equity
1.11
1.2
1.19
1.3
Debt/asset
1.69
1.7
0.9
1.8
Profitabilly
2013
2012
2011
2010
Gross Profit Margin
0.47
0.46
0.48
0.54
Return On Assests
On Assets
0.07
0.08
0.1
0.01
Efficiency
2013
2012
2011
2010
Acct Rec. Turnover
8.01
8.8
8.33
7.18
Days in Receivable
51.14
76.72
43.84
50.84
Interpret what the ratios mean for the company.
Solution
Title:
Interpretation Of Financial Ratios Of Adidas Company
Length:
2 pages
(598 Words)
Style:
APA
Preview
Interpretation of financial ratios of Adidas Company (2010-2013)
Liquidity ratios
The liquidity of a venture refers to its ability to pay its debts as and when they fall due. Liquidity is measured with the help of two key ratios; current ratio and acid test ratio. With regards to the ratios calculated for Adidas Company; the current ratio has improved drastically from 0.15 in 2010 to 1.46 in 2011 and then 1.57 in 2012. Apart from a small dip in 2013 to 1.45.; the current ratio has been improving indicating the increasing ability of the firm to pay back its current liabilities. The acid test ratio measures the ability of the firm to meet its obligations using its most liquid assets such as cash in exception of stock.
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