Annual Report K-Swiss Inc.Jason Corbett ACG2021.080
Executive Summary Upon completion of reviewing the annual report of K-Swiss Inc., I have come to the conclusion that this company is not doing too bad for itself. As you will see in the following slides, the information provided shows that K-Swiss nearly doubled their Net income from 2002-2003, as well as maintained a strong and healthy business which has been audited and approved by the G.A.A.P. www.wssource.com
Chief Executive Officer… Home Office… Fiscal Year… Main productivity… Geographic area… STEVEN NICHOLS Delaware 31248 Oak Crest Drive, Westlake Village, California For the fiscal year endedDecember 31, 2003 K-Swiss primarily produces a wide variety of athletic and casual footwear for everyday use, along with other athletic apparel. North-East United States Introduction
Audit Report • All in all, the auditors of K-Swiss Inc. had very little to comment on about the company. The only thing they reported was that they reviewed the financial statements according to the G.A.A.P and that they believed they looked to be fair in content. • Grant Thornton (LLP)
Most recent price stock… Twelve month trading range of the company’s stock… Dividend per share… Date of the above information… $.01 Per Share January 1st – December 31st $.04 per share Balances derived December 31st, 2003 Stock Market Information I believe that now is a good time to hold K-Swiss stock for those who currently own it and for investors to seriously consider buying some stock while the market is prosperous. As the Income statement reflects, K-Swiss nearly doubled it’s income from 2002 – 2003, and if it continues on the path it is going, then investing in this company could prove to be rewarding.
Industry Situation and Company Plans K-Swiss Inc. looks like they have a good forecast in there future. They are almost doubling there income, and continue to improve. They will more than likely continue to sell the same quality products while keeping up with the modern day fashions. From the looks of it, the stockholder’s will always own the majority of the business
Income Statement K-Swiss resembles a multi-step income statement the most
Assets = Liabilites + S.H.E. Balance Sheet Assets = Liabilites + S.H.E. 2002 2003 20022003 20022003 TOTAL LIABILITES AND S.H.E 2002 $183,833 2003 $234,360
Accounting Policies Significant accounting policies include: Revenue recognition: K-Swiss recognizes revenue when title passes which is normally upon shipment. They alsomaintain allowances for doubtful accounts. Cash: cash equivalents are considered by the company when they are highly liquid and if maturity is within 3 months. Inventories: K-Swiss accounts for it’s inventory using the F.i.f.o. Method. property and equipment: K-Swiss calculates depreciation and amortization using straight-line and accelerated methods. List Of The Topics for Notes To The Financial Statements: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES : PROPERTY PLANT AND EQUIPMENT: INTANGIBLE ASSETS: ACCRUED LIABILITIES: OTHER LIABILITIES: BANK LINES OF CREDIT: INCOME TAXES: COMMITMENTS AND CONTINGENCIES: EMPLOYEE BENEFIT PLANS: STOCKHOLDERS’ EQUITY: CONCENTRATIONS OF CREDIT RISK: NATIONAL GEOGRAPHIC: ROYAL ELASTICS: SEGMENT INFORMATION: QUARTERLY FINANCIAL DATA (Unaudited)
Liquidity Ratios • Working Capital:$213,895-36,509=$177,386 • Current Ratio:$213,895/36,509=5.9 • Receivable turnover:$429,162/44,027=9.75 • Average days’ sales uncollected: ~38days • Inventory turnover:$235,603/63,444=3.71 • Average days’ inventory on hand:~99days
$ $ Profitability Ratios • Profit margin: $50,056/429,162 = 11.7% • Asset turnover: $429,162/209,257 = 2.1 times • Return on assets: $50,056/209,257= 23.9% • Return on equity: $50,056/ 51,743= 96.7%
Solvency Ratio • Debtto equity ’02: $38,283/183,883 = .21 • Debt to equity ’03: $51,743/234,630 = .22 Comments: It is quite evident that the stockholder’s are the primary owner’s of K-Swiss Inc. The debt to equity is extremely less than 1.
Market Strength Ratios • Price/earnings per share • $50,056/35,438,096 = $.001 • Dividend yield: • $.04/.01= $4