Research Report: Solvency and Profitability
The goal of this research report is always to discuss the solvency and profitability of Harley-Davidson, Inc. (HOG) and formulate a measurement for is financial standing and profitability in contrast to the Sector in which that resides. Solvency is determined coming from data collected in the 2012 SEC Harley-Davidson, Inc. 10K report, and calculated dependant on the solvency ratio; Solvency equals After Tax Net Profit in addition Depreciation divided by Long Term Liabilities in addition Short Term Liabilities. According to Investopedia. com the general rule of thumb is that a business with a solvency ratio greater than 20% is considered a economically healthy organization and this will be the baseline in this report considering that the average solvency ratio to get the Weighty Weight Motorcycle market is not known. Profitability can be discovered by many different methods to incorporate ratios including management success measurement like, Return about Investments, Come back on Value, and Come back on Assets. However , success at its simplest, and most finish form, can be measured by simply revenue fewer expenses or perhaps by Major Profit Margin which is worked out by Revenue minus Cost of Goods Offered divided by Sales. Most additional data for market comparisons for profitability will be derived from the Factiva Firm Report: Proportion Comparison Survey and the 2012 SEC Harley-Davidson, Inc. 10K report. H-D is divided into two main segments which are Motorcycles & Related Products, and the Financial Services segments. The motorcycle segment builds and sells motor bikes wholesale in addition to accessories, parts, goods, and deals in guard licensing and training of the businesses trademarks. H-D exclusively develops street legal heavy weight motorcycles intended for freeway use with engines which range from 883 cc's to 1803 cc's (Heavy weight motor bikes make up a specific market type and are establish as street legal motorcycles with...
References: Factiva. (2013). Proportion Comparison Record. http://global.factiva.com.ezproxy.bellevue.edu/ar/arpdf.aspx?pp=PDF.
SEC. (2012). Harley davidson Davidson, Inc. 10K Report. http://www.sec.gov/Archives/edgar/data/793952/000144530513000288/hog12-31x201210xk.htm.
ValueClick, Inc. (2013, June 28). Definitions. Gathered June twenty eight, 2013, by Investopedia. com: http://www.investopedia.com/dictionary/