Question
*PUMA* 1) Must include an introductory paragraph with a succinct thesis statement. 2) Must address the topic of the paper with critical thought. Below is
*PUMA*
1) Must include an introductory paragraph with a succinct thesis statement.
2) Must address the topic of the paper with critical thought.
Below is the information that I have already and I am in great need of these two answers please. Please make both at least 250-300 words. Thank you fo rthe help.....
Puma Performance
Puma SE (Puma) (PINX: PMMAF on MSN) was established in 1924 by Gebrder Dassler Schuhfabrik. They are one of the worlds leaders in sports brands designing, developing, selling and marketing footwear, apparel and accessories. (Puma, 2015) They focus on Football, Running, Training and Fitness, Golf, and Motorsports. The also own the brands Cobra Golf, Dobotex and Brandon. They distribute all over the world including 120 countries and employs more than ten thousand people worldwide. They are based out of Herzogenaurach, Germany.
Puma is officially listed under the Frankfurt and Munich stock exchanges. It is trading in the Prime Standard Segment and the Index SDAX of the German Stock Exchange (Deutsche Brse) and they are listed as PMMAF on NASDAQ. Their main sells are their footwear, which brings in 1,282.7 million a year making up 43.2% of their sells. Apparel is second, bringing in 1,103.1 million and 37.1% of sells. Last is Accessories bringing in 586.3 million and 19.7% of sells. The total sells are 2,972. Million.
Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next two years.
| Q1 15 | Whole Year | 2016 | 2017 | |
| $ | *12 | |||
Sales | 8,214.00 | 98,568.00 | 108,424.80 | 119,267.28 | |
Cost of goods | -4,365.00 | -52,380.00 | -57,618.00 | -63,379.80 | |
Gross profit | 3,849.00 | 46,188.00 | 50,806.80 | 55,887.48 | |
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Royalty & commission income | Assumed growth 10% | 37.00 | 444.00 | 488.40 | 537.24 |
Other operating income & expenses | Assumed fixed except for 5% inflation growth | -3,511.00 | -42,132.00 | -44,238.60 | -46,450.53 |
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EBIT | 375.00 | 4,500.00 | 7,056.60 | 9,974.19 | |
Income from Associated company | Assumed 10% | 9.00 | 108.00 | 118.80 | 130.68 |
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EBIT | 384.00 | 4,608.00 | 7,175.40 | 10,104.87 | |
Taxes on income | -108.00 | -1,296.00 | -2,018.08 | -2,841.99 | |
Net earnings to non-controlling interest | -28.00 | -336.00 | -523.21 | -736.81 | |
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Balance Sheet | |||||
Assets | Q1 2015 | Rep as % sales | 2016 | 2017 | |
Sales | 98,568.00 | 108,424.8 | 119,267.28 | ||
Cash & Cash equil. | 2,950.00 | 3$ | 3,245.00 | 3,569.50 | |
inventories | 6,480.00 | 6.6% | 7,128.00 | 7,840.80 | |
Trade Receivables | 5,964.00 | 6.1% | 6,560.40 | 7,216.44 | |
Other current assets (working capital) | 2,003.00 | 2% | 2,203.30 | 2,423.63 | |
Other current assets | 1,045.00 | 1.1% | 1,149.50 | 1,264.45 | |
Current assets | 18,442.00 | 18.7% | 20,286.20 | 22,314.82 | |
Deferred tax assets | 1,954.00 | 2% | 2,149.40 | 2,364.34 | |
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Other non-current assets | 7,340.00 | 704% | 8,074.00 | 8,881.40 | |
Non-current assets | 9,294.00 | 9.4% | 10,223.40 | 11,245.74 | |
Total Assets | 27,736.00 | 28.1% | 30,509.60 | 33,560.56 | |
Liabilities & Equity | |||||
Current financial liabilities | 599.00 | 0.6% | 658.90 | 724.79 | |
Trade payable | 4,667.00 | 4.7% | 5,133.70 | 5,647.07 | |
Other current liabilities (working capital related) | 2,332.00 | 2.4% | 2,565.20 | 2,821.72 | |
Other current liabilities | 1,516.00 | 1.5% | 1,667.60 | 1,834.36 | |
Current liabilities | 3,114.00 | 9.2% | 10,025.40 | 11,027.64 | |
Deferred taxes | 698.00 | 0.7% | 767.80 | 844.58 | |
Pension provisions | 270.00 | 0.3% | 297.00 | 326.70 | |
Other non-current liabilities | 281.00 | 0.3% | 297.00 | 326.70 | |
Non-current liabilities | 1,249.00 | 1.3% | 1,373.90 | 1,511.29 | |
Shareholder equity | 17,373.00 | 17.6% | 19,110.30 | 21,021.33 | |
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Total | 27,736.00 | 28.1 | 30,509.60 | 33,560.56 |
Income statement for 2013-2014
Income Statement | Q4/ 20144 million | Q4/ 2013 million | Deviation | 1-12/2014 million | 1-12/2013 million | Deviation |
Sales Cost of sales | 750,8 -413,0 | 698,3 -396,7 | 7.5% 4.1% | 2,972.0 -1,586.7 | 2,985.3 -1,597.8 | -0.4% -0.7% |
Gross Profit - in % of consolidated sales Royalty and commission income Other operating income and expenses | 337.8 45.0% 5.2 -332.5 | 301.6 4302% 5.7 -306.2 | 12.0% 7.7 8.6% | 1,385.4 46.6% 19.4 -1,276.8 | 1,387.5 46.5% 20.8 -1.216.9 | -0.2% -6.7% 4.9% |
Operating result before special items - in % of consolidated sales Special items | 10.6 1.4% 0.0 | 1.1 0.2% -129.0 | 892.2% -100.0% | 128.0 4.3% 0.0 | 191.4 6.4% -129.0 | -33.1% -100.0% |
Operating result (EBIT) - in % of consolidated sales Financial result / Income from associated companies | 10.6 1.4% -1.0 | -127.9 -83.3% 0.8 | -108.3% -223.5% | 128.0 4.3% -6.2 | 62.5 2.1% -8.7% | 104.9% -28.8% |
Earnings before ---taxes (EBT) - in % of -------------consolidated sales Taxes on income--- - Tax rate------------- Net earnings ------attributable to non-controlling interests | 9.6 1.3% -4.7% 48.6% -9.5 | -127.1 -18.2% 18.6 14.6% -6.7 | -107.5% -125.0% 42.0% | 121.8 4.1% -37.0 30.4% -20.8 | 53.7 1.8% -32.5 60.5% -15.9 | 126.6% 13.7% 30.5% |
Net earnings | -4.6 | -115.2 | -96.0% | 64.1 | 5.3 | 1,103.0% |
Earnings per share () Earnings per share () - diluted | -0,30 -0,30 | -7,71 -7,71 | -96,0% -96,0% | 4,29 4,29 | 0,36 0,36 | 1.103.0% 1.103,1% |
Weighted average shares outstanding Weighted average shares outstanding - diluted | 14,940 14,940 | 14,940 14,941 | 0,0% 0,0% |
Balance Sheet 2013-2014
Balance Sheet | Dec 31,2014 million | Dec 31, 2013 million | Deviation |
Assets | |||
Cash and cash equivalents | 401,5 | 390,1 | 2,9% |
Inventories | 571,5 | 521,3 | 9,6% |
Trade receivables | 449,2 | 423,4 | 6,1% |
Other current assets (Working Capital related) | 202,4 | 167,8 | 20,6% |
Other current assets | 58,0 | 11,6 | 400,9% |
Current Assets | 1.682,5 | 1.514,2 | 11,1% |
Deferred taxes | 178,8 | 164,2 | 8,9% |
Other non-current assets | 688,7 | 630,1 | 9,3% |
Non-current assets | 867,5 | 794,3 | 9,2% |
Total Assets | 2.549,9 | 2.308,5 | 10,5% |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current financial liabilities | 19,8 | 25,1 | -21,1% |
Trade payables | 515,2 | 373,1 | 38,1% |
Other current liabilities (Working Capital related) | 252,1 | 211,1 | 19,4% |
Other current liabilities | 35,5 | 81,6 | -56,5% |
Current liabilities | 822,6 | 690,8 | 19,1% |
Deferred taxes | 54,6 | 50,3 | 8,5% |
Pension provisions | 26,0 | 28,1 | -7,3% |
Other non-current liabilities | 28,4 | 42,1 | -32,5% |
Non-current liabilities | 109,0 | 120,4 | -9,4% |
Shareholders' equity | 1.618,3 | 1.497,3 | 8,1% |
Total Liabilities and Shareholders' equity | 2.549,9 | 2.308,5 | 10,5% |
Puma Liquidity: Working Capital Ratio: Current Assets/Current Labilities = Current Assets-16826 & Current Liabilities-8226. Working Capital Ratio- 16826/8226=2.045. Quick Ratio: Cash + Marketable Securities + Accounts Receivables/ Current Liabilities = (4015+0+4492)/8226=1.034
Profitability: Net Profit Margin = Net Income/Net Sales*100; 64.1/2972*100 = 2.157%. Operating Income Margin = Operating income / Net Sales; 121.8 (EBT) / 2972*100 = 4.098%. Return on Equity (Using Du Pont). Net Income/Sales, Sales/Assets x Assets/Equity; Net Income- 64.1, Sales- 2972, Assets-23085, Equity-16183. 64.1/2972 x 2972/23085 x 23085/16183= 0.02156 x 0.12874 x 1.42649 = 0.00428*100= 0.4%.
Performance assessment using EVA: EVA = Net Operating Profit after taxes - (Capital Invested x Cost of Capital) Net Operating Profits after taxes = 121.8 - (121.8*30.4%) = 84.77 Cost of capital or return on equity - Net Income / Equity - 64.1 / 16183 = 0.4% Capital Invested - 16183 x 0.4% = 16118.27
A major portion of Pumas financing includes shareholders equity and it increases in comparison to the previous year. It indicates more reliance of firm on
equity capital than on the debt capital. Pumas risk on their firm is low. Their portion of debt is lower and it is reduced in the current year as compared to the previous year. Pumas leverage is low as well. This would mean that less reliance on external capital and less long-term solvency. Also, Pumas stock is shows a tremendous increase compared to the year before. All of these factors would push towards their stock bring a win, win situation.
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