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Harley-Davidson Financial Analysis Factors Resulting Thesis

8% (nd) III. DECREASE in NET INCOME

Harley Davidson made an announcement in October 2007 that included results for the third quarter, which ended September 30 with a stated revenue at $1.54 billion as compared to last year's same quarter of $1.64 billion, which is a 5.8% decrease. Overall income decreased by 15.3%.

IV. EPS, RETURN on ASSETS, and RETURN on EQUITY

Harley Davidson's 'Earning Per Share' (EPS) has grown at a strong rate for over ten years and from 2004 to 2005 "EPS grew from $3.00 to $3.41, an increase of 13.7%." (Melief, Bundgaard, and Hathaway, 2006) Harley Davidson is stated to have a "much better return on assets than any of its competitors." (Melief, Bundgaard, and Hathaway, 2006) the return on assets has been increased by Harley through use of "excess cash in stock buy-back program.

Return on Assets Harley Davidson Honda Suzuki Yamaha

15.50% 5.60% 2% 3.50%

16.40% 5.60% 2.80% 8.50%

18.20% 5.20% 3.60% 3.90%

Source: Melief, Bundgaard, and Hathaway, 2006

Harley Davidson further has the "highest return on equity of the group" of the four major manufacturers of heavyweight motorcycles." (Melief, Bundgaard, and Hathaway, 2006)

Return on Equity Harley Davidson Honda Suzuki Yamaha

2003 25.70% 16.20% 4.80% 8.6%

2004 27.60% 16.20% 6.30% 18.4%

2005 31.10% 14.80% 8.10% 7.40% Source: Melief, Bundgaard, and Hathaway (2006)

V. RATIO ANALYSIS

Valuation Ratios

Company

Industry

Sector

S&P 500

P/E Ratio (TTM)

P/E High - Last 5 Yrs

P/E Low - Last 5 Yrs

Price to Sales (TTM)

Price to Book (MRQ)

Price to Tangible Book (MRQ)

Price to Cash Flow (TTM)

Price to Free Cash Flow (TTM)

Owned Institutions

Dividends

Dividend Yield

Dividend Yield - 5 Yr Avg

Dividend 5 Yr Growth Rate

Payout Ratio (TTM)

Growth Rates %

Company

Industry

Sector

S&P 500

Sales (MRQ) vs. Qtr 1 Yr Ago Sales (TTM) vs. TTM 1 Yr Ago Sales - 5 Yr Growth Rate

EPS (MRQ) vs. Qtr 1 Yr Ago EPS (TTM) vs. TTM 1 Yr Ago EPS - 5...

Gavin, 2008)
Bibliography

Curtis, Glenn (2008) Harley-Davidson Downshifts. 23 Apr 2008 Investopedia Online available at http://community.investopedia.com/news/IA/2008/Harley-Davidson_Downshifts.aspx

Harley Davidson Inc. Form 8-K (2007) Filed 10/.24/07 for the Period Ending 10.19.07

Melief, Mark; Bundgaard, Tycen and Hathaway, Jordan (2006) Strategic Report for Harley Davidson 4 Apr 2006. Online available at http://72.14.205.104/search?q=cache:0x-ZwPxLfYYJ:www.economics.pomona.edu/jlikens/SeniorSeminars/pandora/reports/harley.pdf+Melief,+Bundgaard,+and+Hathaway,+2006&hl=en&ct=clnk&cd=1&gl=us

Gauvin, T. (2008) Ratio Analysis. Online available at http://72.14.205.104/search?q=cache:lVbpsaLDfmAJ:perleybrook.umfk.maine.edu/slides/spring%25202005/bus411/harley%2520Davidson.ppt+Harley+Davidson:+Financial+Analysis&hl=en&ct=clnk&cd=113&gl=us

Harley Davidson Financial Analysis

Sources used in this document:
Bibliography

Curtis, Glenn (2008) Harley-Davidson Downshifts. 23 Apr 2008 Investopedia Online available at http://community.investopedia.com/news/IA/2008/Harley-Davidson_Downshifts.aspx

Harley Davidson Inc. Form 8-K (2007) Filed 10/.24/07 for the Period Ending 10.19.07

Melief, Mark; Bundgaard, Tycen and Hathaway, Jordan (2006) Strategic Report for Harley Davidson 4 Apr 2006. Online available at http://72.14.205.104/search?q=cache:0x-ZwPxLfYYJ:www.economics.pomona.edu/jlikens/SeniorSeminars/pandora/reports/harley.pdf+Melief,+Bundgaard,+and+Hathaway,+2006&hl=en&ct=clnk&cd=1&gl=us

Gauvin, T. (2008) Ratio Analysis. Online available at http://72.14.205.104/search?q=cache:lVbpsaLDfmAJ:perleybrook.umfk.maine.edu/slides/spring%25202005/bus411/harley%2520Davidson.ppt+Harley+Davidson:+Financial+Analysis&hl=en&ct=clnk&cd=113&gl=us
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