Analysing financial statements : QUICKSILVER Inc. Annual report 2005 (titre original)
The company began its business in 1976 as a California company producing boardshorts for surfers in the
United States under a licence agreement with the Quicksilver brand founders in Australia. In the 80's the
company decided to expand its distribution channels. In 1986, they went public and purchased the rights to the
Quicksilver brand in the United States from their Australian licensor. Then, in 1991, they expand in Europe
through their European licensee and introduced their brand ROXY, a surf brand for teenage girls. They
continued to expand their business in Japan and Australia (2000, 2002) thanks to the International Quicksilver
and Roxy trademarks. As brand building has been a key for the growth of the Quicksilver Company, they
bought in 2004 the brand DC shoes to expand their presence in action sport-inspired footwear. In 2005, they
acquired Skis Rossignol SA, a wintersports and golf equipment manufacturer.
This latest acquisition has a big impact on the annual report of Quicksilver 2005. Rossignol owns many brands:
Rossignol, Dynastar, Lange, Look, and Kerma brands; the Cleveland Golf, and "Never Compromise"
concerning their golf products.
All the data we have analysed in this work are from the annual report of the Quicksilver Inc. 2005.
We will begin to analyse the presentation of the report decided by the company. Thanks to these elements we
will be able to understand how the Quicksilver team wants to communicate with its shareholders and what the
aim of such a presentation is.
Then, we will give ratios to understand the content of the given data through the report. Our aim is to
understand as clearly as possible the way Quicksilver presents its results to keep its shareholders and business
partners confident for the company and the way this is manage.
[...] We then talk about lifestyle, community, quality In bringing shareholders in a confident atmosphere, the management team has a lot to prove: because they are really good in doing business, they will make their investments very profitable. After the photos comes message from the President”. At this stage of the annual report, although we would like to know as a shareholder who is talking to us, we still have no photos yet of any chairman or president of the Quicksilver Inc. NEVEU Diane SUP 5 1B –Analysing Financial Statements- 01-02- The president is talking about the global strategy of the company. Thanks to the acquisition, Quicksilver is now a leading company outdoor from the United States. [...]
[...] The figure indicates 145 days. Thanks to the receivable turnover, we can specifically understand how good the management of account receivable is. This is the relationship between the sales of the company and the account receivables: that means here The sales represent more than 2.8 times the AR. The day's sales in receivable indicate how many days of sales represent the AR of the company: the result is 128.49 days. The total assets turnover measures the sales compared to the total assets of the Quicksilver Company: which is a very good result. [...]
[...] The president explains in a clear way where is the Quicksilver Company and what are the aims of such a strategy. At the beginning of his speech, the president is using strong words as “transformational strong word but very neutral concerning financial results. From the beginning of the text, this word indicates the shareholder that he will have no specific indication concerning the company. The first paragraph of the speech ends on “opportunities for growth have never been more compelling” and, at the text ends on the word which could make short the situation of the Quicksilver Inc.: their work to make vision become truth, to become effective profit”. [...]
[...] NEVEU Diane SUP 5 1B –Analysing Financial Statements- 01-02- CONCLUSION As a conclusion, we can say that the Quicksilver Company did its best in the annual report 2005 to encourage its shareholders to be confident. The Company is engaged in its ambitious vision: to continue to expand globally and in the range of its products. The financial data clearly show that the Quicksilver Company is in a transitional period highly influenced by its acquisition of the Rossignol SA. The financial effort of the company is eaten by its expansion which means that it has invested its resources in the external growth. [...]
[...] NEVEU Diane SUP 5 1B –Analysing Financial Statements- 01-02- Track and pursue late payers. Get external help if the company's efforts fail. Not to feel guilty asking for money . it's the company's one and it is entitled to it. Make that call now. And keep asking until the company gets some satisfaction. In difficult circumstances, the company takes what it can now and agrees terms for the remainder. It lessens the problem. When asking for the company's money, the manager has to be hard on the issue - but soft on the person. [...]
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