Case 1 Harrod's Sporting Goods

Case 1

1.

| 2007 | 2008 | 2009 |

Net income | 193200 | 243100 | 200318 |

Sales | 4269871 | 4483360 | 5021643 |

Profit margin | 4.52% | 5.42% | 3.99% |

Net income | 193200 | 243100 | 200318 |

total assets | 3170200 | 3360650 | 3510110 |

a) Return of assets | 6.09% | 7.23% | 5.71% |

| | | |

Net income | 193200 | 243100 | 200318 |

Sales | 4269871 | 4483360 | 5021643 |

| 4.52% | 5.42% | 3.99% |

Sales | 4269871 | 4483360 | 5021643 |

total assets | 3170200 | 3360650 | 3510110 |

| 1.346877 | 1.334075 | 1.430623 |

b) Return of assets | 6.09% | 7.23% | 5.71% |

Net income | 193200 | 243100 | 200318 |

Stockholder's equity | 1204600 | 1310655 | 1333800 |

a) Return on equity | 16.04% | 18.55% | 15.02% |

| | | |

return on assets | 0.061 | 0.072 | 0.057 |

(1-Debt/assets) | 0.37998 | 0.39 | 0.37999 |

b) return on equity | 16.03% | 18.54% | 15.03% |

2. Overall their profit margin, Return on assets and the return on equity went up from their starting levels between 2007 to 2008. Then all three levels dropped below their starting levels in 2009. It would raise some concerns that they hit their peak in 2008 and are now on a downward trend. A deeper look into the drop would be recommended.

3.

| 2009 |

Net income | 310818 |

Sales | 5021643 |

Profit margin | 6.19% |

| |

Net income | 310818 |

total assets | 3510110 |

a) Return of assets | 8.85% |

| |

Net income | 310818 |

Sales | 5021643 |

| 0.0619 |

Sales | 5021643 |

total assets | 3510110 |

| 1.43062 |

b) Return of assets | 8.85% |

| |

Net income | 310818 |

Stockholder's equity | 1333800 |

a) Return on equity | 23.30% |

| |

return on assets | 0.0885 |

(1-Debt/assets) | 0.37999 |

b) return on equity | 23.29% |

4. The higher net income for the year 2009 made a huge change to the overall picture of the company. Instead of showing a loss greater than their opening year, it now shows a continuous increase in...