Analysing financial statements: Puma

Résumé du document

Despite few important sport events, the sporting goods industry as a whole, has continued to record further growth. The healthy growth in the sport lifestyle segment was due to the sustained trend towards fitness and wellness, the increasingly important connection between sport and lifestyle, and the progressive verticalization of sales & marketing. In view of the positive consumer consumption, trade and industry are looking forward to the future with optimism. This positive outlook is also supported by numerous consumer behavior and consumer goods studies. PUMA achieved a new majority in shareholdings by the participation of the French luxury group PPR (Printemps Pinault Laredoute). Integration into the PPR Group will bolster PUMA's market position in the sport lifestyle segment further and yield qualitative synergies. PUMA now not only has the support of a leading, financially strong international luxury group, but can also profit from PPR's global orientation, strong portfolio of premium brands, and also expertize in retail operations.

Extraits

[...] That means that profitability is more and more higher. Asset turnover Globally it is increasing, but we can notice in 2007, it have to be the highest possible, because it measures financial profitability. Productivity Puma has a really good economical efficiency. Combined ratio The company is well managed, with a top in 2005. This ratio has doubled in 5 years, that is unbelievable. Earning capacity The evolution is spectacular. Puma has a good earning capacity, with a peak in 2005. [...]

[...] PUMA also received a new majority shareholder through the participation of the French luxury group PPR (Printemps Pinault Laredoute). Integration into the PPR Group will bolster PUMA's market position in the sport lifestyle segment further and yield qualitative synergies. PUMA now not only has the support of a leading, financially strong international luxury group, but can also profit from PPR's global orientation, strong portfolio of premium brands, and also its know-how and expertise in retail operations. Environment and main competitors NIKE, Inc . Announced its financial results for 2007. [...]

[...] It also has a good ability to generate profits. For the financial structure, while the ratios are good or very good. The company controls its good profitability and is a very good manager. If we see its position 10 years ago, it can be seeing as a miracle. Now the company can compete with giants like Nike or Adidas, the finance is perfect but also the advertising campaigns are very innovative, and with lower power and money, Puma can take market share to its competitors. But succeed. [...]

[...] Solvency The solvency of Puma is excellent Capital structure ratio Good financial structure, well balanced Cash covenant Puma does not draw on its cash - a slight decline in 2006, offset by an increased in 2007 Current ratio Puma can assume its short-term debt with a good margin, with a peak in 2005, it must be prudent and keep this ratio high Acid test ratio since 2005 acid test ratio is correct and being strongly improved We can see that the account receivable turnover ratio is very high, and stay always around 5 and 7. But there is variation and between year 2005 and 2006 we can see that this ratio is decline to reach its lowest rate. But in 2007 it is increasing again, so that is a good point. It has to stay high and company has to be careful of variation by trying to stabilize it, or to improve it. The average ratio is around 3. [...]

[...] That is a good element for the company, but moreover it is constantly increasing, even if it become stagnant. Puma has the ability to convert its cash quickly, it ensures that the company is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The capital result is constantly increasing. There is no reason to increase capital because it is sufficient and long term debts are marginal. Puma is financed through its cash. [...]