Objective

2. Objective of this assignment

The objective of this project is to see how more investors can be attracted by using the financial ratios theory to get the results of analyzing financial statements of Adidas, Puma and Li Ning.

Naturally, investors are the most important stakeholders in a firm because each company can get much capital by attracting new investors and its brand will be known in the world. So using the financial ratios theory to get the results of analyzing financial statements of Adidas, Puma and Li Ning will help three companies to see how the more investors can be attracted.

The reasons why we focus on the results of analyzing the financial statements are that Operating performance and financial performance can be shown by the results of analyzing of profitability, assets management, solvency, capital structure and cash flow. Specifically, asset management illustrates the efficiency of using asset in each company, and profitability show how much interest the company create for their investors. At the same time, solvency shows the ability to deal with its liability in each company. Also, capital structure states how the company gets the money to operate business. The healthy conditions of financial statements are explained by the good assets management, higher profitability, solvency and capital structure. If the results of analyzing the financial statements are healthy, potential investors will have enough confidence about their investment. Thereby, the results of analyzing financial statements will help Adidas, Puma and Li Ning to attract more investors.

3. Central research question

How can the more investors be attracted by using the financial ratios theory to get the results of analyzing financial statements of Adidas, Puma and Li Ning?

➢ To know which company did the best on their business performance in the last two years, using financial statement information analyze Adidas, Puma and Lining. ( Using calculation short-term and...