Financial Statement Analysis Essay Example | Topics and Well Written Essays - 2250 words

Financial Statement Analysis - Essay Example The apperal industry is a generated $276 billion in sales in the year 2005 (Plunkett Research). Competition in this industry is fierce and the production of low end products is being cannibilized by the Asian markets which includes India, The People’s Republic of China and Pakistan among other nations. In order to apperal companies to suceed in develop nation they must use a branding strategy to differentiate their products. The two apperal companies analyzed in this report are Wolverine World Wide Inc. and The Timberland Company. Wolverine World Wide Inc (WWW) is company with a rich history dating back to the year 1883 when it was founded by G.A Krause. The company is dedicated to producing and selling branded footwear, apperal and accessories products. Some of the licenced brands the company owns include Bates, Cat Footwear, Harley-Davidson Footwear, Hush Puppies, Merrell, Pantagonia Footwear, Sebago, and Wolverine; a portfolio of product which help generate 47 million pairs of shoe sales in 2006 (Annual Report: Wolverine 2006). The company is a global player with a physical precense in over 180 countries worldwide. The company’s target market is North America which represents the majority of the company sales (43%). Emerging markets such as Europe were growth drivers in 2006, the European region had a 10% sales growth during that fiscal year. The company has expanded its product offerign to move beyond being a shoe manufacturer. The firm offerrs many apperal and accessories products, a strategy that takes advantage of the branded image recognition of lines such as Sebago which are known for their quality, great designs and durability. In 2006 Wolverine generated $1141.9 in revenues. Appendix A shows the 2006 Income Statement of Wolverine. The year’s total sales was a significant improvement over the results of the last few years. The 2006 sales total represent an 8% sales

Assessing the Performance of the U.S. Economy Essay

Assessing the Performance of the U.S. Economy - Essay Example The report is started with the overview of the current state of the economy of the United States of America. This is followed by an identification of the most relevant economic theories and principles that can be applied to evaluate the performances of the US economy over a specific time period. The report is suitably concluded by highlighting the findings from the analysis and prescribing the macroeconomic policies that should be formulated for analyzing the economic performance of the nation. The macro economic performance of any economy can be estimated through the use of different economic metrics that represent and mirror the economic performance of a nation as estimated from different dimensions and perspectives. For this purpose, multiple theories and principles of economics are implemented in the analysis. The six main economic metrics that are used for the analysis with their application in the US economic scenarios are given as follows and heir correlations are given in Appendix 1. The gross domestic product is an important economic metric which is an aggregate measure of the monetary value of all finished goods and services that are produced by all residents and institutional units within the national border of a country (Mankiw, 2007). The Gross Domestic Product can be used as a key economic indicator for gauging the health of the US economy. The GDP of US has contracted by 0.7% in the first quarter of 2015 as compared to the last quarter of 2014. The average GDP growth rate of US from 1970 to 2015 is 3.26% (Appendix 1). Since the US economy is one the most advanced and diverse economies of the world, therefore it has been able to manage its GDP fluctuations through the proportions of production from different sectors. However, the contraction noted in the first quarter of 2015 was a reflection of the higher accumulation of inventory and widening trade deficit in the economic constructs (Bade and Parkin, 2002). The purchasing power parity is a