Adidas ag stock7/30/2023 Quick ratio calculated by author as total current assets less inventories all over total current liabilities. Figures provided in € millions, except the quick ratio. Source: Figures sourced from adidas AG Financial Supplement January-September 2022. In terms of the company's balance sheet, we can see that the quick ratio has fallen below 1 in the past year - indicating that adidas AG is in a less favourable position to service its current liabilities with existing liquid assets: Notwithstanding higher expenses, net sales continued to see a strong increase in spite of lower consumer demand across Greater China as well as the revenue hit from suspending Russian operations.Īdditionally, we can see that EMEA and North America accounted for 66% of total net sales in September 2022 (up from 63% in September 2021) with performance across these regions continuing to remain strong. Gross profit also came in at above 9%, with higher operating expenses ultimately resulting in a decrease in operating profit:Īdidas AG Q3 2022 Quarterly Results Release When looking at the company's most recent earnings results, we can see that adidas AG has continued to see double-digit growth of over 11% in net sales as compared to September 2021. Given that adidas AG has faced a range of macroeconomic and company-specific pressures, the purpose of this article is to investigate whether the stock could have scope for a rebound from here. In a previous article, I made the argument that investors are likely to pay more attention to earnings and cash flow growth going forward in spite of continuing sales growth. We can see that the stock is down sharply since mid-2021: The stock has been buffeted by the effects of supply chain concerns and inflation, the effects of COVID lockdowns in China, as well as the recent ending of the Ye partnership. Investment Thesis: adidas AG has strong potential to rebound given continued sales growth and a potential undervaluation on a P/E basis.Īdidas AG ( OTCQX:ADDYY) has had a tough time of it over the past couple of years. Pere_Rubi/iStock Editorial via Getty Images
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