FINAL CASE â€“ 40 POINTS (RATIO ANALYSIS)
The CFO from your Research Project Company ( Adidas is the company) has asked you to do a two-year analysis of the companyâ€™s liquidity, profitability, and long term solvency.
Write an interoffice memo (a word document will be provided) in the manner discussed in class that provides your analysis and recommendations of Adidasâ€™s liquidity, profitability, and long term solvency. (20 points) Please include a PDF file of JUST the companyâ€™s Income Statement and Balance Sheet. (5 points)
Remember Adidas is the company!
Use excel to create a spreadsheet showing your calculations for each ratio for the two years. (15 points) Include the spreadsheet in your submission.
Ratios to use: (If you do not use any of these ratios, please provide the rationale why it was not used.)
Debt to Equity
Times Interest Earned
Return on Equity
Return on Assets
Return on Stockholderâ€™s Equity
Average Collection Period
Average days in Inventory