ipl-logo

2009 Year-End Financial Results Of Harley Davidson 2009

490 Words2 Pages

The Harley Davidson 2009 year-end financial results indicate a net loss of about 55.1 million. The main reason for this is the restructuring costs expected in the 2009 securitization. The restructuring costs savings affect the company currently, but will yield profit by 2012, since the company will have stabilized its new mode of quality operations. Additionally, the company recorded a net loss in the sale of Buell motorcycles and MV Agusta. The two brands are losing market in the current economy. The company made a decision to halt the sale of the two products in future. This is therefore a positive long-term move since it will reduce the losses made upon disposal of all the present products. The 2009 securitization also shows an increase in the total cost of operations. However this is due to the actions the company took in preparation for future prospects. This includes retaining skilled personnel, employing training programmes and bringing in qualified employees. The 2009 securitization also shows a reduction in shipments and revenue. This is a positive long term advantage, as it will eventually reduce the finances lost indirectly on import of goods. Sub-prime mortgages …show more content…

The debt to equity ratio is lower in 2009 compared to 2008. This is because the company borrowed less from financial firms in 2009, compared to 2008. Although the funds acquired from debts help in operations and expansion, such as increasing the total purchases made, they increase the amount the company loses in form of interests to financial institutions. Due to the company’s decision to reduce the rate of borrowings made, the current result is that the company will experience a reduction in its total purchases and sales. However, there is an anticipated benefit in the future, since the company will lose less in form of

Show More
Related
688 Words | 3 Pages

Sally’s Beauty Holding, Inc., who has a current ratio of 2.4, is quicker to turn their current asset into cash but also is not investing excess assets. Both companies are able to meet their debt obligations. On the other hand, Coty’s Inc. current liabilities exceeds their current assets revealing their current ratio to be .94. Having a ratio below one can imply that current assets are barely being covered by the current liabilities. Ulta Beauty’s debt-to-equity is estimated to be .65, which reveals Ulta Beauty to have a low risk and not using high amounts of debt to finance operations, because total liabilities is $1,001,660 and total shareholders’ equity is $1,550,218.

Read More
853 Words | 4 Pages

This affected ABC Learning’s financial performance dramatically. The company’s current ratio in 2006 was 180% which means for every $1 the business pays for current liabilities the company had $1.80 of current assets. However in 2007 the company’s current ratio was 26.9%. This means for every $1 for current liabilities they had 26.9 cents of assets. ABC Learning payed too much for it’s child care licenses and child care centres and it couldn’t repay back the money they borrowed to buy these

Read More
827 Words | 4 Pages

2. Buy back and re-advertised stocks in the market. Moreover, the company enjoys an excellent financial strength. Thus the company can continue doing business under the less-than-favourable conditions without having to pay substantial interests to the creditors. To further ensure the company financial stability, it is critical for the management to take advantage of the low price and also give a lit to the current earnings per unit

Read More
231 Words | 1 Pages

Lockheed Martin Corporation has a debt to equity ratio of 14.86 in 2015 and 9.89 in 2014. These ratio’s show Lockheed Martin Corporation financing from creditors in relation to the investors. Since my company has a higher ratio it means that they are considered more risky to creditors and investors. Lockheed Martin Corporation debt to equity ratios shows that the investors haven’t funded the company as much as creditors have. The investors don’t have as much skin in the game as the creditors do.

Read More
990 Words | 4 Pages

The inventory was sold and replaced 5.49 times in the year of 2013. This ratio is high. This means that the demand for the Dollarama’s products is high. This indicates that Dollarama Inc.’s performance in the fiscal year of 2013 is high. 5) Discuss the debt to equity ratio and what it says about how Dollarama finances its operations?

Read More
2099 Words | 9 Pages

Here we will focus on the days’ sales in receivables, days’ sales in inventory, and total asset turnover to contribute to our understanding of the company’s health. Days’ sales in receivables is the length of time it takes the company to pay for an item in this case General Motors sells their automobiles almost three times Ford Motor Company. Next, days’ sales in inventory show that the Ford Motor Company keeps an automobile in inventory about twenty days prior to selling it whereas General Motors maintains the vehicle longer. Finally, the total asset turnover provides how efficient a company uses its assets to generate sales. This is calculated by dividing the sales by the total assets.

Read More
1341 Words | 6 Pages

Though having dropped from 0.65 in 2008 to 0.63 in 2009, this is still significantly higher than 0.5. This means that 63% of Gemini’s assets are financed by debt, thus the lenders bear the greatest risk. This is because Gemini financed all land, equipment and some patents with term loans. Though the Debt to Equity Ratio conveys the same information as the Debt Ratio, we see that from 2008 to 2009 this number has dramatically dropped. As opposed to using 1.87 in borrowed funds compared to each dollar provided by shareholders like in 2008, Gemini now only uses 1.71.

Read More
781 Words | 4 Pages

If a firm’s ROE is low and management wants to improve it, explain how using more debt might help. According to the DuPont equation, ROE can also be expressed as the profit margin, multiplied by total asset turnover, multiplied by the equity multiplier. Here, the equity multiplier is simply total assets divided by total common equity. Thus, using more debt would decrease total common equity, thereby increasing the equity multiplier.

Read More
1676 Words | 7 Pages

Therefore, Brian Douglas should replace the old machine with Davidson. However, when Harley becomes less risky and Davidson becomes riskier than they initially were, Harley becomes more sensible scenario for the company since it brings more value than Davidson. Harley Davidson $603.037,58 $541.157,70 (see Exhibit xxx)

Read More
895 Words | 4 Pages

The last product that this company produces are the flow controllers. Flow controllers are products that are very customizable but are not as competitive on the market demanding higher prices. The planned gross margin for the flow controllers was 35% with an actual margin of 41.%. There was a significant increase without the loss of any business. The Wilkerson company have a quality leadership team; however, there are some things that needs to be changed for the company to succeed and prepare for potential price

Read More
782 Words | 4 Pages

OBJECTIVE: Determining the Strengths, Weaknesses, Opportunities and Threats of the firm Harley Davidson. INTRODUCTION OF THE FIRM: HARLEY DAVIDSON is an American motorcycle manufacturer which was founded in Milwaukee, Wisconsin in 1903. It is one of the worlds largest motorcycle manufacturers and an iconic brand widely known for traditional styling ,design simplicity ,durability ,quality and its loyal following. It is one of the two major American motorcycle manufacturers to have survived the Great Depression. STRENGTHS: • It has established a strong brand image as its motorcycles have been achieving iconic status.

Read More
1493 Words | 6 Pages

This led to financial trouble and subsequent purchased by the American Machine and Foundry Company (AMF) in 1969. Under AMF, its image deteriorated due to reduced marketing and research and development (R&D) efforts, and quality became a big issue. By 1981, Harley-Davison was facing strong competition from Japanese motorcycles, and its sales declined greatly. Finally, the management and staff

Read More
3261 Words | 14 Pages

SUBMITTED BY TEAM DIGBY ASWANTH KUMAR (13UTA07) LAVANYA V (13UTA19) PRIYANKA R (13UTA27) VIGNESH.P (13UTA37) SHRUTHI.R (13UTA46) I) EXECUTIVE SUMMARY Harley Davidson is an American motorcycle manufacturer who is known for their heavy weight motor cycle. Harley has a very strong brand name and reputation.

Read More
1155 Words | 5 Pages

Harley-Davidson Economic Analysis I will discuss a business opportunity for Harley-Davidson, Inc. to begin offering motorcycle products in Vietnam to increase stagnant sales over the past four years. The mission of Harley-Davidson is to fulfill dreams of motorcyclists by expanding the line of motorcycles and branded products and services in selected market segments. The organization has to look for fresh customers among different market segments and age groups since the current market segment is aging. Vietnam is a suitable country for Harley-Davidson due to the city streets being chaotic, making traveling easier for two-wheeled vehicles.

Read More
4014 Words | 17 Pages

Skechers’s debt per equity ratio slightly decreased from the year 2012: from 0.462x to 0.443 which is an indicator that Skechers are keeping a close eye on debt and are trying to finance the company through equity and this is apparent when we look at the Skechers financial statements for the years 2012 and 2013 where equity increased at a higher amount than debt. When we compare Skechers’s ratio (0.443) to that of the Nike (0.721), we realize that it is much higher than Sketcher’s which might be that Nike is taking safe measures when it comes to financing themselves: which is through debt. But at the same time it is a very high and risky ratio. Equity Multiplier= Total Assets/ Total

Read More

More about 2009 Year-End Financial Results Of Harley Davidson 2009

Related Topics

Open Document