Harley Davidson Amanda Chisholm Section 003. Executive Summary I believe that the Harley Davidson Company is moving in the right direction. The popularity.

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Presentation transcript:

Harley Davidson Amanda Chisholm Section 003

Executive Summary I believe that the Harley Davidson Company is moving in the right direction. The popularity of motorcycles is on the rise and Harley Davidson knows how to keep the “Harley” name in every mind in America. Get ready to ride!! Harley Davidson Annual Report Harley Davidson Annual Report

Introduction ► James L. Ziemer ► Milwaukee, Wisconsin ► December 31 st 2005 ► Harley Davidson is the provider of the most “famous” and well known motorcycles in the world. ► United States of America

Audit Report ► Ernst & Young LLP. ► The auditors stated that the internal running of the company are highly effective.

Stock Market Information ► $63.62 ► Twelve Month ► Oct. 10 th 2006 ► HOLD

Industry Situation and Company Plans I believe that the companies future plans is simply to grow and to remain the most popular motorcycle company. In the letter to the Share holders it states that this company is here to accept challenges. In other words, they are never going to back down. Harley Davidson is here to stay. ► Harley Davidson Website Harley Davidson Website Harley Davidson Website

Income Statement ► The format is more like a multi-step format. Year Gross Profit $2,040,499$1,899,535 Income from operations $1,470,011$1,361,491 Net income $959,604$889,766 There has been in increase since The most significant increase was in gross profit.

Balance Sheet YEAR Assets = Liabilities Stockholders Equity 2005$5,255,209$2,171,604$3,083, $5,483,293$2,264,822$3,218,471 There has actually been a decrease from the year 2004.

Statement of Cash Flows ► Cash flow from operating activities was less then net income in the year 2004 but was more then net income in the year ► Yes the company is growing through investing activities in the year 2005 but not in the year ► Proceeds from issuance of medium-term notes. ► Overall cash has actually decreased in both 2004 and 2005.

Accounting Policies ► The Company participated in a joint venture with Porsche AG, of which the Company owned a 51% share. The accounts of the joint venture with Porsche AG were included in the Company’s Consolidated Financial Statements, adjusted to reflect Porsche AG’s interest in operating results and net assets.

Financial Analysis Liquidity Ratios Year ► Working Capital 2,272,125 2,510,490 ► Current Ratio ► Receivable turnover 4 times 4.5 times ► Average days’ sales uncollected ► Inventory turnover

Financial Analysis Profitability Ratios Year ► Profit margin 18.2% 17.7% ► Asset turnover ► Return on assets 33.4% 32.5% ► Return on equity 56.3% 52.4%

Financial Analysis Solvency Ratio Year ► Debt to equity ► There has been an obvious decrease in Debt to Equity. This is a very good thing for the Harley Davidson Company.

Financial Analysis Market Strength Ratios Year: ► Price/earnings per share $3.42 $3.02 ► Dividend yield $.625 $.405