ROLL NUMBER- 32 NAME: NITIN SAINI PRN: 16020441093 COMPANY:Adidas India Marketing Pvt Ltd TOPIC- Analyse the changes in the share capital and the reserve of the firm for last 5 years. Is company financially strong? Give reasons to support your answer. INTRODUCTION Adidas is one of the well-known trading company all over the world and needs no introduction. Adidas is been considered as the largest multinational company in Europe which deals with the trading of sportswear and footwear. Adidas- the name of the company was conceptualised by taking the surname of the 2 brothers that is the Dassler group but soon they had their conflict which made them split. Hence Adi Dassler took the initials of his name and surname and founded the company …show more content…
But the main source is share capital as since 5 years the company shows negative values in reserve total. Adidas has tried to always increase their horizon by working with different and eminent people to publicise their products. The company had major links with people like Stan Smith and Tracy McGrady. TERMINOLOGIES: Share Capital Share capital is the amount raised by the issue of shares by the company in the market. The total amount is divided into small fragments and each part is called as share. The one who holds certain number of shares in a company is called the shareholder. The person who holds the maximum number of shares is made as the chairmen of the group and is responsible for making the crucial decisions in a company. Types of Share Capital: 1) Authorized Capital – It is basically the maximum amount that a company can raise with issues of shares in the market. So the share capital can never be more than the authorized capital and this is also called as Registered Capital. 2) Subscribed Capital – It is the number of shares for which the public has shown interest in buying shares. In simple words if the company financial condition and history is good then more and more number of people show their interest in buying …show more content…
4) Called up Capital – The partial capital amount that a company will ask the shareholders to pay out of the total issued capital is called as called up capital. 5) Paid Up capital – Out of the total called up capital the amount of capital which the company has received is called as Paid up capital. Reserves It is the amount of money which is retained by a company, but are not distributed to the owners of the company. These are some of the profits/reserves that can be used for any future needs. Typically these retained earnings are used for different purpose like business expansion etc. Types of reserve • General Reserves: These are the reserves for which the purpose is not defined and can be used for any purpose. These are used whenever the need arises like building new plants, paying back loans etc. • Specific Reserves: These are well defined reserves and can be used only for those planned activities for which the reserves are
The capital business sector is the business sector for securities, where organizations and the legislature can raise long haul stores. The capital business sector incorporates the stock exchange what 's more, the security market. Money related controllers, for example, the U.S. Securities and Exchange Commission, direct the capital markets in their individual nations to guarantee that financial specialists are ensured against extortion. The capital markets comprise of the essential business sector, where new issues are appropriate to financial specialists, and the optional business sector, where existing securities are exchanged. (n.d.).
Hill Country practices the conservative capital structure, which has excessive liquidity and lower interest rates that will bring negative impacts on the company’s financial performance measures. So, it is a good opportunity for Hill Country to implement a more aggressive capital structure. For example, the Chief Executive Officer (CEO) of this company can increase the leverage ratio by either increase the debt or reduce the equity or both. At first, debt financing usually used when a firm raises money for capital expenditures by issuing debt instruments to individual or institutional investors.
I. Strengths of TARGET Corporation Target Corporation is one of the largest and oldest public discount retailing company operate in the United States. The company founded in 1902’s by George Dayton (as also known as Dayton Dry Goods in 1962’s). Target store has a huge store footprint and enjoys considerable brand recognition. Target’s portfolio of owned and exclusive brands is also its strength, which allow retailer to a valuable differentiating lover in high competitive retail environment.
Nike and their Just Do it slogan is one that is very known throughout the world. Nike is a fortune 500 company. Nike is a major company in sporting products and has put a lot of time in developing the company reputation in reliable and good quality. Nike is very smart in marketing their products to the general public. They use all types of methods to get the company to attract consumers.
Their current ratio is 1.4% (total current assets/total current liabilities). According to the Risk Management Association of Financial Ratio Benchmarks, the current average ratio is 1.5%. In 2014, the current ratio for the firm was 1.46% while the average ratio in the industry (NAICS 311330) was 1.6%. The company’s net property and equipment in 2015 is worth 2.6 million dollars, a slight increase from 2014, which was 2.3 million. The company is considering taking on some debt to increase their production capabilities.
The company Fast Retailing Co., Ltd was found and established on 1 May 1963 in Japan by Tadashi Yanai. Presently, they have launched several apparel and lifestyle brand of UNIQLO, GU, Theory, Comptoir des Cotonniers, Princesse tam.tam and J Brand. UNIQLO was first, to be introduced by Fast Retailing in 1984. It was a brand created to provide comfortable causal clothing to everyone, women, men, kids and babies. A lifestyle wear that was made for all, for everyday activities.
Company Description Nike believes diversity and inclusion drives innovation that lead to a competitive advantage. Nike has a broad base of suppliers that actively and significantly support their business requirements. Nike’s Global Procurement team manages the procurement process, including selecting and contracting with the right suppliers for the right goods and services. They have also begun to reduce Nike 's footprint and lessen their impact.
Mark Moulton Professor Ottemann December 10, 2014 2014 Term Paper Nike & Under Armour Company Assessment Nike and Under Armour are two of the largest sportswear and athletic shoe companies in the world. Their histories and growth are similar but they use different corporate and business strategies. Their strategies reflect their corporate structure and the personalities of their leadership.
Adidas, 3. Inditex, 2. Nike, and the leading competitor being 1.Christian Dior . This is analysis looks at the sales, profits, assets and market value of each company and based on their individual success each company is ranked.
Applications: The applications deal with the “Halo effect”. This effect occurs when the public sees celebrities use the products, they are more inclined to buy the product because they want to mimic their role model. A celebrity is a person who is known by his well knownness. McCracken has defined a celebrity endorser as a person who enjoys public recognition and who uses this recognition on behalf of a brand to endorse the brand.
Introduction Adidas is a German multinational corporation and it is one of the largest companies in the sporting goods industry. Adolf and Rudi Dassler promoted Adidas in 1949 and it was named after its founders 'Adi ' from Adolf and 'Das ' from Dassler. The company offers its products through three main brands: adidas, Reebok and TaylorMade-adidas Golf. The company operates through more than 170 branches across the planet in Europe, the US and Asia, each focusing on a particular market segment. The company designs and manufactures shoes, clothing and accessories.
(1) Primary ways companies raise common equity: A company can raise common equity in following two ways: i. By retaining earnings and ii. By issuing new common stock. d. (2) Cost associated with reinvested earnings or not: The companies may either pay out the earnings in the form of dividends or else retain earnings for reinvestment in business. If part of the earnings is retained, opportunity cost is incurred, stockholders may had received those earnings as dividends and then invested that money in stocks, bonds, real estate and others.
In the year 2010, it spent almost $800 million on ‘non-traditional’ methods of advertising. • Nike has chosen to target the seventeen year olds more as research has shown that the 17 years olds spend 20% more on shoes than the adults. • It has decided to do away with the dependence on the ‘big budget top-down brand campaigns that usually celebrate just one hit. • Its advertising and marketing campaigns are widely split between advertising agencies that specialize in recent technologies and social media. • It has chosen to focus more on the production of ‘cool stuff’’.
Skechers’s debt per equity ratio slightly decreased from the year 2012: from 0.462x to 0.443 which is an indicator that Skechers are keeping a close eye on debt and are trying to finance the company through equity and this is apparent when we look at the Skechers financial statements for the years 2012 and 2013 where equity increased at a higher amount than debt. When we compare Skechers’s ratio (0.443) to that of the Nike (0.721), we realize that it is much higher than Sketcher’s which might be that Nike is taking safe measures when it comes to financing themselves: which is through debt. But at the same time it is a very high and risky ratio. Equity Multiplier= Total Assets/ Total
Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. A few have already started to transpire, though others are purely likelihoods. External factors affecting this mix is one of the most common, technology. Before Nike releases its brand new product line to the market, it’s always prepared to authorize that whether or not there has been any sort of major advances from the other competitors that would tracker its launch. Thus they must time this carefully, as other competition may demand to shadow its release with their marketing