Crocs designs, develops, and manufactures consumer products from specialty resins. The company's primary product line is Crocs-branded
Question:
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.
Required:
1. Which company was the more profitable in 20067 2. What was the likely source of that company’s superior profit performance in 2006?
3. Which company was the more profitable in 2004? What seems to have been the problem at the underperforming company that year?
4. Which company better manages its receivables, inventories, and payables?
5. Is it likely that Crocs will continue to grow in the next several years at the same rate it grew between 2004 and 2006?
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