Calculate harley davidsons annual sustainable growth rate

Assignment Help Corporate Finance
Reference no: EM13892236

Harley Davidson, Inc., the iconic motorcycle company, has the fol- lowing ratios for the years 2000 through 2004:

 

2000

2001

2002

2003

2004

Profit margin (%)

11.4

12.3

13.5

15.5

16.7

Retention ratio (%)

91.3

91.9

92.8

92.2

86.6

Asset turnover (X)

1.25

1.14

1.11

1.00

0.97

Assets (end of year, millions)

$2,436

$3,118

$3,861

$4,923

$5,483

Equity (end of year, millions)

$1,406

$1,756

$2,233

$2,958

$3,219

Growth rate in sales (%)

17.8

16.4

21.4

14.0

8.5

a. Calculate Harley Davidson's annual sustainable growth rate from 2001 through 2004.

b. Did Harley Davidson have a growth problem in these years?

c. How did Harley Davidson cope with its sustainable growth problems?

Reference no: EM13892236

Questions Cloud

Calculate genentechs annual sustainable growth rate : Calculate Genentech's annual sustainable growth rate for the years 2003-2007. Did Genentech face a growth management challenge during this period? Please explain briefly.
Summary of the given article : Summary of the given Article. Article- Ethics Maturity and Successful Leadership by James F. Duffield and Richard H.Mccuen
Research the efficacy of mis and decision-making systems : research the efficacy of MIS and decision-making systems
Develop collaborative support for new strategies : 1. As an organizational leader trying to develop collaborative support for new strategies, what would you say is the most critical aspect for you to consider in terms of stakeholder roles (i.e., cultural competency, stakeholder engagement, etc.)?
Calculate harley davidsons annual sustainable growth rate : Calculate Harley Davidson's annual sustainable growth rate from 2001 through 2004. Did Harley Davidson have a growth problem in these years? How did Harley Davidson cope with its sustainable growth problems?
Discussion-using technology to deliver training : Discussion-Using Technology to Deliver Training
What do you understand by total quality management : what do you understand by Total Quality Management, what are the requirements to implement TQM approach in an organization.
Process an order or perform a service : Think of a time when a company did not process an order or perform a service for you in a timely manner.
Analyze the climate of the time period : Analyze the climate of the time period in terms of political, socioeconomic, environmental and technological context in which this person worked

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd