I need to know the latest (2012/2013) See example below: Financial Analysis liqu

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I need to know the latest (2012/2013)

See example below:

Financial Analysis liquidity-Current Ratio Harley Davidson has a current ratio of 2.69 in 2012. indicating it can cover the obligations coming due more than twice with the assets that can be convened to cash in the short term. This is an attractive ratio, and a five year high (see Appendix 2) resulting from management's decision to issue long term debt (not liquid assets) to fund the opening of 31 dealerships in 18 countries in 2012. including Malaysia, Russia, Turkey, India, China, Iloliviu, Croatia and Taiwan (We are Unified in Purpose- 2012 Chairmans letter. 2013). The resulting sales growth of 30% from investment in these emerging global markets served to further strengthen Harley Davidson's current ratio. Leverage- Debt to Equity Ratio As a result of the aggressive expansion initiatives undertaken by Harley Davidson's senior management and the subsequent issuance of long tenn debt, the company had a debt to equity ratio of 2.59 in 2012. This ratio (above 1 .0) would be of concern, as it's indicative of excessive dett. lower creditworthiness and a weaker balance sheet; however, the recreational vehicle industry is very capital intensive and is marked by high debt While Harley Davidson is ranked third within the industry at 2.59, they should consider funding their growth through available internal funds (as seen by working capital ratio of $2.5M in 2012) in an effort lo reduce reliance on debt issuance. Profitability- Operating Profit With base motorcycle price ranges of $9k-$38k. Harley Davidson financial Services offers flexible financing designed specifically for their owners. They provide customers the ability to not only finance their motorcycle, but also finance custom parts, accessories, motor clothes and protection plans (Harley Davidson. 2011). Harley Davidson is able to enhance the profit potential of each customer through cross-selling, as evidenced by their net profit margin (or return on sales) of 17.9% in 2012.

Explanation / Answer

Sep 28, 2013 Sep 29, 2012 Oct 1, 2011 Oct 2, 2010 Oct 3, 2009 Sep 27, 2008

Current ratio 1.21 1.07 1.14 1.11 1.33 1.01

Quick ratio 0.93 0.77 0.77 0.77 0.93 0.72

Cash ratio 0.34 0.26 0.26 0.25 0.38 0.26

Source: Based on data from Walt Disney Co. Annual Reports

Ratio Description The company

Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Walt Disney Co.'s current ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.

Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Walt Disney Co.'s quick ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.

Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Walt Disney Co.'s cash ratio improved from 2011 to 2012 and from 2012 to 2013.The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

Leverage -Debt Equity Ratio

The tangible common equity (TCE) ratio is a useful number to gauge leverage of a financial firm. Specifically, it answers the question: "How much can the value of a bank's assets fall before the entire value of tangible* common equity is wiped out?"

For example, assume a bank as a TCE ratio of 5%. If the value of all of the banks assets fell by 5%, theoretically stockholders would no longer have a claim on the bank's tangible assets.

Another way of thinking about the TCE ratio of 5% is that the remaining 95% of the bank's tangible assets have been purchased using loaned funds that the bank must repay.

This ratio is worth spending time with. Once investors understand its implications, they rarely look at banking businesses the same way.

The amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation. Operating income takes the gross income (revenue minus COGS) and subtracts other operating expenses and then removes depreciation. These operating expenses are costs which are incurred from operating activities and include things such as office supplies and heat and power. Operating Income is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as "operating profit" or "recurring profit."

Sep 28, 2013 Sep 29, 2012 Oct 1, 2011 Oct 2, 2010 Oct 3, 2009 Sep 27, 2008

Return on Sales

Operating profit margin 20.51% 20.73% 18.89% 16.96% 14.40% 19.57%

Net profit margin 13.62% 13.44% 11.76% 10.41% 9.15% 11.70%

Return on Investment

Return on equity (ROE) 13.51% 14.29% 12.86% 10.56% 9.80% 13.70%

Return on assets (ROA) 7.55% 7.59% 6.66% 5.73% 5.24% 7.08%

The Walt Disney Company reported a 13 percent increase in fourth-quarter profit on Thursday, as strength in three major divisions

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