8% (nd)
III. DECREASE in NET INCOME
Harley Davidson made an announcement in October 2007 that included results for the third quarter, which ended September 30 with a stated revenue at $1.54 billion as compared to last year's same quarter of $1.64 billion, which is a 5.8% decrease. Overall income decreased by 15.3%.
IV. EPS, RETURN on ASSETS, and RETURN on EQUITY
Harley Davidson's 'Earning Per Share' (EPS) has grown at a strong rate for over ten years and from 2004 to 2005 "EPS grew from $3.00 to $3.41, an increase of 13.7%." (Melief, Bundgaard, and Hathaway, 2006) Harley Davidson is stated to have a "much better return on assets than any of its competitors." (Melief, Bundgaard, and Hathaway, 2006) the return on assets has been increased by Harley through use of "excess cash in stock buy-back program.
Return on Assets Harley Davidson Honda Suzuki Yamaha
15.50% 5.60% 2% 3.50%
16.40% 5.60% 2.80% 8.50%
18.20% 5.20% 3.60% 3.90%
Source: Melief, Bundgaard, and Hathaway, 2006
Harley Davidson further has the "highest return on equity of the group" of the four major manufacturers of heavyweight motorcycles." (Melief, Bundgaard, and Hathaway, 2006)
Return on Equity Harley Davidson Honda Suzuki Yamaha
2003 25.70% 16.20% 4.80% 8.6%
2004 27.60% 16.20% 6.30% 18.4%
2005 31.10% 14.80% 8.10% 7.40% Source: Melief, Bundgaard, and Hathaway (2006)
V. RATIO ANALYSIS
Valuation Ratios
Company
Industry
Sector
S&P 500
P/E Ratio (TTM)
P/E High - Last 5 Yrs
P/E Low - Last 5 Yrs
Price to Sales (TTM)
Price to Book (MRQ)
Price to Tangible Book (MRQ)
Price to Cash Flow (TTM)
Price to Free Cash Flow (TTM)
Owned Institutions
Dividends
Dividend Yield
Dividend Yield - 5 Yr Avg
Dividend 5 Yr Growth Rate
Payout Ratio (TTM)
Growth Rates %
Company
Industry
Sector
S&P 500
Sales (MRQ) vs. Qtr 1 Yr Ago Sales (TTM) vs. TTM 1 Yr Ago Sales - 5 Yr Growth Rate
EPS (MRQ) vs. Qtr 1 Yr Ago EPS (TTM) vs. TTM 1 Yr Ago EPS - 5...
Harley Davidson 5304 Harley-Davidson Harley-Davidson Inc. is an American motorcycle manufacturer specialized in heavyweight cruiser and chopper style of motorcycles with over 700 cc. Founded in 1903 and headquartered in Wisconsin, United States, Harley-Davidson is one of the two major American motorcycle manufacturers and known as a classic American icon. Since its inception, Harley-Davidson has been setting remarkable records with its top quality motorcycles for miles per gallon, speed, racing, distribution strength,
Harley Davidson Strategic Management -- Harley Davidson This work examines the strategic management of Harley Davidson Company and seeks to answer specific questions relating to this company's management through conduction of a Porter's Five Forces analysis and a review of the literature on this company. The specific research questions examined in this study are those as follows: (1) What are the primary competitive forces impacting U.S. motorcycle producers in general and producers like
In this sense, the company should be attempting a strategy of aggressive growth, but not the kind of growth it has traditionally sought. In the past, Harley-Davidson has sought to maintain a kind of brand purity that has managed to develop a loyal and committed fan-base while reducing the company's market share over all. Put simply, it does not matter how loyal these fans are if they cannot afford the
0%; 2002: 47.5%; 2003: 49.5% Honda - 2001: 20.5%, 2002: 19.8%; 2003: 18.4% Suzuki - 2001: 10.8%; 2002: 9.6%; 2003: 9.8% Yamaha - 2001: 7.9%; 2002: 8.9%; 2003: 8.5% Net revenues motorcycles in major markets United States - 2002: $3,416,432; 2003: $3,307,707 Europe - 2002: $337,463; 2003: $419,052 Japan - 2002: $143,298; 2003: $173,547 Canada - 2002: $121,257; 2003: $134,319 Competitive Categories Performance Styling Breadth of product line Image and reputation Quality of after-the-sale service Price Internal Analysis As the external analysis clearly reveals, the Harley Davidson
Harley Davidson External Business Environment Strategic Business Plan Outline The Analysis of H-D's External Environment The industry external environment compounds an array of comprehensive forces that relate to the organization. External environment analysis of an industry facilitates an understanding of an organization position comparative to other organizations in the same industry (Worthington & Britton, 2006). An awareness of the external forces working across the industry players plays a handy role in organizations strategic
Harley-Davidson Retail Sales and Deliveries Source: Seeking Alpha (2007) Over the past four years, account receivable growth has outpaced sales and the result is there is more inventory on dealer's lot than at any time in the history of HOG. The analysis states: "If the additional dealer inventory build was taken out of Harley's EPS from the previous two years and shipments evenly distributed throughout the quarters then Harley would have reported
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