COMPANIES: Lululemon, nike and adidas

Financial analysis. Perform a financial analysis for the company (if you analyze a division of a company and the information for the division is not available, you should use theparent companys financial information) and at least two of its closest competitors. The analysis should follow the below guidelines:

(1) calculated the following ratios in each of the three recent years for your company and its two competitors; report the ratios in graphs or tables along with the formula you have used for the calculation:

• Profitability, measured using net profit margin (also called return on sales) and/or returns on assets.

• Liquidity, measured using either current ratio or quick ratio.

• Leverage, measured using either debt to assets ratio or debt to equity ratio. If a

  company has a negative equity, then debt to assets ratio should be used.

• Annual sales growth rate, measured as the percentage of growth of sales from

  the previous year.

  (2) Interpret the differences between your company and its competitors on each ratio. Your interpretation should include an explanation of what a larger or smallernumber tell us about the companys financial performance/health as well as adiscussion of possible causes of the difference between your company and itscompetitors with support of evidence (for instance, if your companys ROA issmaller, is it because the companys net profit margin is smaller or its asset turnoveris lower or both?).

  (3) Interpretthechangesinyourcompanysratios.Foreachratio,yourinterpretation should include an evaluation of whether the companys number is improving ordeclining and a discussion of possible causes of such a trend with support ofevidence (for instance, if your companys net profit margin has improved in thepast few years, is it because the company increased its price or decreased its costs/expenses, or a combination of both?)