Harley Davidson

SWOT Analysis Strengths ?Strong EPS growth Earnings per get by has consistently increase over past three financial years for Harley-Davidson. pecuniary year 2002 EPS was $1.94, followed by financial year 2003 EPS of $2.517, and finally fiscal year 2004 with EPS of $3.016. ?Increased common stock cash dividends over past three years, Harley-Davidsons dividends per share have increased date and time again. Dividend per share in 2002 was $.14, $.20 per share in 2003, and $.41 per share in 2004. ?High tax income pelf margin Harley-Davidson has gross profit margin of 39.31%, substantially loftyer than their closest competitor polestar, whose gross profit margin is 24.75%. ?Highest market capitalization in industry As part of recreational vehicles industries sector, Harley-Davidsons market cap of $13.53 billion and bell per earnings of $15.05 is higher than that of any competitor. ?Healthy Net Income Harley-Davidson soon has shekels income of $938.52 million (unaudited) relative to their key competitor Polaris, which has net income of $148.05million (unaudited). Weaknesses ?Decreased return on investments Harley-Davidsons return on integrity decreased from 29.32% in fiscal year 2003 to 28.81% in fiscal year 2004. Furthermore, return on assets decreased from 17.32% in fiscal year 2003 to 17.

10% in 2004. ?Increased total debt equity Harley-Davidsons debt ratio remained the equivalent in fiscal year 2002 and 2003 at 34%. However, their debt ratio increased dramatically in fiscal year 2004 to 40%. This constitutes increasing financial risk and may affect their espousal and/or bond ratings. ?Low annual dividend yield For investors who enjoy high dividend yields, they may purchase Polaris stock prior to buying Harley-Davidson stock. With an dividend yield of 1.30%, it will be difficult to reach to Polariss dividend yield of 2.50% in the near future. Opportunities ?Expansion of company in foreign market segments While Harley-Davidson has market... If you want to get a full essay, order it on our website: Orderessay

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