Annual Report Analysis for Adidas

1121 WordsDec 25, 20115 Pages
2011 Annual Report Analysis for Adidas Prepared for Professor Tabor Prepared by Jena Howell 2011 Annual Report Analysis for Adidas Prepared for Professor Tabor Prepared by Jena Howell Table of Contents Introduction 2 Annual Report Analysis of Adidas 2 Auditors 2 Subsequent Events 3 Trends in Total Assets and Total Liabilities 3 Three Largest Assets and Liabilities for Recent Year 4 Stock Options 4 Income Statement 4 Net Income 5 Comprehensive Income 5 Direct or Indirect Cash Flow Statement 5 Items Included in Cash from Investing Activities 5 Summary 6 Introduction Adidas is a name brand that most people know about. Have you ever wondered though, what goes on behind the scenes? Well, that…show more content…
There were no separately reported items. Gross profit dropped by 10.4% and operating profit dropped by 52.6% between 2008 and 2009 fiscal years. Net Income Adidas group had a major drop in net income between the 2008 and 2009 fiscal years. At the end of the 2008 fiscal year, net income was € 645,000,000. At the end of the 2009 fiscal year, net income was € 245,000,000. This was a 61.9% drop. The main reason for such a drastic drop in net income was a decrease in sales and financial income. Comprehensive Income Adidas group had net loss of €132,000,000 in 2009 and a net gain of €149,000,000 in 2008 on cash flow hedges. Also, there was an actuarial loss of €12,000,000 in 2009 and a gain of €2,000,000 in 2008 of defined benefit plans and asset ceiling affect (IAS 19). Direct or Indirect Cash Flow Statement Adidas group uses the direct method because on the cash flow statement they report disbursements from operating activities. Items Included in Cash from Investing Activities The two largest items in cash from investing activities are the following: * Proceeds from sale of property, plant and equipment * Proceeds from sale of other intangible assets The proceeds from the sale of property, plant and equipment brought in €16,000,000 in net cash in 2009 and €27,000,000 in 2008. The proceeds from the sale of other intangible assets brought in €10,000,000 in 2009 and €8,000,000 in 2008. These numbers are net cash.
Open Document