1 / 12

Wheels

Wheels. Donald Tabor 201005706 Drew Garvie 201102361 Darcy McHugh 201102183 Adam Olsen 201102985. Performance Overview (2018). Sales:$13,298,680 COGS:$7,076,874 Units Sold (Total): 24,024 units Mountain: 21,056 units at $709 Road: 2,968 units at $1650

melia
Download Presentation

Wheels

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Wheels Donald Tabor 201005706 Drew Garvie 201102361 Darcy McHugh 201102183 Adam Olsen 201102985

  2. Performance Overview (2018) • Sales:$13,298,680 • COGS:$7,076,874 • Units Sold (Total): 24,024 units • Mountain: 21,056 units at $709 • Road: 2,968 units at $1650 • Expenses: $3,177,017 • Profit:$2,311,740 • Shareholder Value: $23.56 • Earnings Per Share: $2.31

  3. Pricing and Quality Strategy • Pricing: • Mountain Price Point: Mid-Low, $709 • Road Price Point: Mid, $1600 • Quality: Low quality rating compared to other firms

  4. Financial Analysis • Sales have underperformed industry - Sales increased from 2014-2018 - COGS remained consistent over time (Avg. 56.3% of sales) • Expenses have increased over time, sales revenue increased as well • Profit after tax of just over 2.3 million (2018) - approximately 1.5 million below the industry average

  5. Financial Analysis • Sales increased 83.6% between 2015-2017 • 29% decline moving into 2018 • 36% decrease in COGS from 2017-2018

  6. Financial Analysis 2017 • 2017 was our best year in terms of firm performance • $18.8 million in sales • $10.9 million COGS • Gross margin of $7.8 million • Net Income of $3.5 million

  7. 2014-2018 I/S Vertical Analysis • Slight decrease in COGS over time • Gross margin increased over time • Net income increased over time

  8. I/S Vertical Analysis • The cost of goods sold in 2018 in relation to sales (53%) has decreased from that of 2017 (57%). • 2018 COGS is slightly higher than the industry average of 52%. • Gross Margin has increased over the last five years to 47% of sales, just above the industry average of 45%. • Net Income went down from 19% of sales in 2017 to 17% which is on par with the industry average.

  9. I/S Horizontal Analysis • Growth in revenue from 2014-2017 • Decrease in sales revenue in 2018

  10. I/S Horizontal Analysis • 2014-2017 Wheels experienced growth in sales revenue, COGS and net income • In 2018 management decisions lead to a decline in sales revenue and net income • Reason for decline: • Excess inventory • Did not reach forecasted sales for our road bicycle

  11. Wheels: Ratio Analysis (2018) • Current Ratio: 15.41 -Inventory at year end was high • $12.4 million in cash during this period ensures day-to-day operating costs are covered • Debt-to-Owner’s Equity: 0.028 - Low debt-to-equity ratio, low risk firm to invest in • Return on Sales 0.17 - Return on sales is undesirable

  12. High NAMKS - $1,700 *Wheels - $1600 RideIt. - $1,600 Mac Wheels - $1,550 2WD - $820 RideIt. - $720 Pedalz - $720 *Wheels - $709 NAMKS - $700 Mountain Road Youth Mac Wheels - $695 Cycle Solutions - $675 2WD - $425 Pedalz - $385 Mac Wheels - $380 Low

More Related