Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Which company better manages its receivables, inventories, and payables?
Transcribed Image Text:Common Size and Financial Statement Analysis (15%)
Crocs designs, develops, and manufactures consumer products from specialty resins. The company's
primary product line is Crocs-branded footwear for men, women, and children. It sells its products
through traditional retail channels, including specialty footwear stores. Deckers Outdoor designs and
produces sport sandals as well as sheepskin and sustainable footwear. The company's products are
marketed under three proprietary brands: Teva, Simple, and UGG. It sells its products through domestic
retailers and global distributors and directly to consumers via the Internet.
Financial ratios for each company follow. EBI denotes after-tax earnings before interest expense and
excluding nonoperating gains or losses.
Selected Financial Ratios
Annual growth rate
Sales
Operating earnings (before taxes)
Assets
Profitability
EBI/Sales margin
Asset turnover
Return on Assets (ROA)
Selected expense items (% of sales)
Cost of goods sold
Selling, general, and administrative
Selected asset utilization ratios
Days receivables outstanding
Days inventory held
Days payables outstanding
Dequired
2009
(10.5%)
(72.8%)
(10.1%)
(0.064)
1.49
(0.095)
52.3%
48.3%
24.2
127.8
37.1
Crocs
2010
22.3%
(258.3%)
34.1%
0.086
1.65
0.142
46.2%
43.3%
26.5
107.4
27.5
2011
26.7%
68.5%
26.6%
0.113
1.61
0.182
46.4%
40.2%
27.2
98.5
39.4
2009
17.9%
55.0%
23.8%
0.143
1.50
0.215
54.4%
23.3%
41.4
73.5
37.9
Deckers Outdoor
2010
23.1%
37.4%
35.0%
0.158
1.42
0.225
49.8%
25.4%
35.2
77.1
38.8
2011
37.6%
14.4%
41.7%
0.145
1.41
0.204
50.7%
28.6%
41.1
98.9
39.3
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