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Review the financial statements of Adidas for the past 3 years
Review the financial statements of Adidas for the past 3 years. Using the financial statements as a guide, provide a financial critique of how the company is doing financially from a financial statement perspective. This would include running ratios such as debt to equity ratio, profit margin ratio, gross margin ratio, and evaluating the financial statements themselves. Have sales increased/decreased? What has happened to net income/loss? What about some of the major expenses? Finally, explain why you would or would not invest in this company. You may use first person for this portion of the response.
Expert Solution
The analysis suggests the following :
debt to equity ratio:has decreased from 0.2632 to 02321
profit margin ratio : Has increased from 7.77 to 8.36
gross margin ratio:Increased from 51.85 to 52.00
Have sales increased/decreased? Increased from 25881 to 26476(Million $)
What has happened to net income/loss?2018 to 2148 (Million $)
Also th EPS has improved .
So considering all the aspects it would be recommended to Invest in this company.
Source# https://www.macrotrends.net/stocks/charts/ADDYY/adidas-ag/income-statement
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