Harley Davidson Income Statement Analysis

Harley Davidson income statement provides the revenue and expanse for five financial years of 2013, 2014, 2015, 2016 and 2017. Along with that it also provides the earning per share (EPS) for those financial years. Their income statement is strong and stable over the years. Revenue is always higher than 5b over the past years. However, there is ups and downs in their revenue. Revenue has decreased by 4.3% over these five years. Revenue decrease is constantly seen in last three years. 2014 was their best year in terms of total revenue. On that year revenue was increased by 5.6%, after that it had started declining. Cost of revenue has changed accordingly with the revenue and common size income statement shows, it is around 60% of their total

Hence, the company is little bit struggling with their gross profit but it is not too much severe. Although, the gross profit is not severely decreased but the operating expanse has gone higher. Based on common size income statement, this is consistently grown over the last three years and 2017 operating expanse to sells ratio is 15.9% higher than the 2013. This is more severe for the company, where the revenue going lower but operating expanse is going up. This has a direct impact on their operating income and recent year it has decreased by 15.1% compared to last year. Operating income to sales ratio had decreased by 19.3% over the past five years. The company do not spend much on the interest, which is a good sign for them. Specially a company which has been established long back and after years of operation lower interest expanse is as expected. finally, the increase in operating expanse has impacted the EBT and Net Income. Both have seen a decline in last three years. Moreover, the latest year change is most severe compared to all last three years. In 2017, the Net Income has decreased 24.6% compared to