Name:___________________________________________________________
25 pts
Crocs and Timberland Financial Statement Analysis
Acceptable Industry Standards
not more than 50% of
Cost of Merchandise Sold
sales
not less than 50% of
Gross Profit on Sales
sales
Total Expenses
not more than 35%
Net Income
not less than 15%
Part 1: Crocs
Calculate the Cost of Revenue Sold %
1. 2008: ___________% = ________________ / __________________
2. 2007: ___________% = ________________ / __________________
3. 2006: ___________% = ________________ / __________________
Does this % Pass Industry
standards’ test (Y or N)
________
________
________
Calcualte the Gross Profit % %
4. 2008: ___________% = ________________ / __________________
5. 2007: ___________% = ________________ / __________________
6. 2006: ___________%= ________________ / __________________
Does this % Pass Industry
standards’ test (Y or N)
________
________
_________
Calcualte the Net Income % %
7. 2008: ___________% = ________________ / __________________
8. 2007: ___________% = ________________ / __________________
9. 2006: ___________%= ________________ / __________________
Does this % Pass Industry
standards’ test (Y or N)
________
________
_________
Part 2: Timberland
Calcualte the Cost of Revenue Sold %
10. 2008: ___________% = ________________ / __________________
11. 2007: ___________% = ________________ / __________________
12. 2006: ___________% = ________________ / __________________
Does this % Pass Industry
standards’ test (Y or N)
________
________
________
Calcualte the Gross Profit % %
13. 2008: ___________% = ________________ / __________________
14. 2007: ___________% = ________________ / __________________
15. 2006: ___________%= ________________ / __________________
Does this % Pass Industry
standards’ test (Y or N)
________
________
_________
Calculate the Net Income % %
16. 2008: ___________% = ________________ / __________________
17. 2007: ___________% = ________________ / __________________
18. 2006: ___________%= ________________ / __________________
Does this % Pass Industry
standards’ test (Y or N)
________
________
_________
Part 3: There are 9 major Indicators on Financial Statements that Stakeholder can look to in order to
determine Financial Health. Use your judgment to determine these 9 indicators for either Crocs or
Timberland.
Company:____________________________
1. How has the account values changed over the past 3 fiscal years…increase, decrease, consistent?
a. _______________________________
2. How do the % compare to its competitor….better, worse, the same?___________________
3. Liquidity: Has cash increased or decreased throughout the past 3 fiscal years? ____________
a. What is the difference between the Cash amount for 2008 compared to its competitor?
__________________________________ (subtract and indicate who has more cash in the
bank)
4. Has the AR (net receivables) amount increased or decreased throughout the past 3 fiscal years?
____________
5. Has the AP amount increased or decreased throughout the past 3 fiscal years? ____________
6. How has the value of Inventory changed throughout the past 3 fiscal years? _______________
7. Analysis of Solvency:
a. What is the Net Income for the past 3 fiscal periods?
i. ________________ ____________________ __________________
b. What is the Demand for products they sell, in your opinion, is it going up or down and
WHY?
i.
8. Debt-Equity Ratio for 2008: ______________________________
Total liabilities
Total Equity
Debt-Equity Ratio for 2008 for competition: )__________________________
Total liabilities
Total Equity
9. Profitability Analysis (you completed this on page 1)
Part 4: Cost Accountant Recommendations:
1. What are 3 ways that both retailing companies increase their Gross Profit Margin? see notes
a.
b.
c.
2. Do you feel comfortable investing your money in this company? ______________________
3. Which indicator helped you the most in making your decision to invest or not invest?
a. _________________________________________________