Comparative Analysis Case adidas and Puma The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively.

The complete annual reports, including the notes to the financial statements, are available online.

Instructions

Use the companies’ financial information to answer the following questions.

(a) How much working capital do each of these companies have at the end of 2012?

(b) Compute both companies’

(a) current cash debt coverage,

(b) cash debt coverage,

(c) current ratio,

(d) acid-test ratio,

(e) accounts receivable turnover, and

(f) inventory turnover for 2012. Comment on each company’s overall liquidity.

(c) What types of loss or gain contingencies do these two companies have at the end of 2012?

Data From Appendix B

Data From Appendix C

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LIABILITIES AND SHAREHOLDERS' EQUITY Current bank liabilities Trade payables 13 44,1 35,1 13 376,1 431,4 Income taxes 23 54,7 82,5 Other current provisions 16 118,1 43,8 Liabilities from acquisitions Other current financial liabilities Other current liabilities Current liabilities 17 2,6 93,6 13 13 0 0 114,1 56,4 93,8 96,4 803,5 839,2 Deferred taxes 8 54,1 63,6 Pension provisions 15 Other non-current provisions 16 56 30,7 29,8 38,3 26,3 Liabilities from acquisitions 17 3,3 6,8 Other non-current financial liabilities 13 Other non-current liabilities 13 33 0,2 0,3 2,9 10,6 Non-current liabilities Subscribed capital Group reserves 129,4 137,5 18 38,6 38,6 18 223,8 281,2 Retained earnings 18 1.357,6 1.317,3 Treasury stock 18 -31,6 -32,6 Equity attributable to the shareholders of the parent 18 Non-controlling interest 18 Shareholders' equity 18 co co co 1.588,5 1.604,5 8,9 1.597,4 0,7 1.605,2 Total liabilities and shareholders' equity 2.530,3 2.581,8