Query by k-rei: Exactly where can I locate the Recreational Automobiles Industry’s averages for financial ratios?
I am performing a paper on Harley Davidson and calculated their financial ratios and now I have to evaluate them to the industries averages for the these very same ratios. The ratios incorporate: fast ratio, present ratio, inventory turnover, fixed asset turnover, total asset turnover, return on assets, debt ratio, revenue margin on sales, cash ratio, and break even.

Ideal answer:

Answer by WildCat Guy
This could be variety of challenging. Most monetary sites like Yahoo! Finance and CNBC.com will group Harley-Davidson with automotive dealers (e.g. Honda, GM, Ford).

To come up with a accurate industry average, you will probably have to produce your own by utilizing a spreadsheet (Excel). You can discover most of your ratios from the above talked about internet sites.

But 1st, you will have to decide what businesses must be included in your regular. This will clearly be other firms that make recreational cars. The very first firms that come to thoughts when I feel Recreational cars are Polaris (PII), Bombardier (BDRAF.PK), Suzuki (SZKMF), and Yamaha (YAMCF.PK).

Discover that most of these businesses are “pink slip” or “more than the counter” stocks (not listed on an exchange). As a outcome, a lot of of the financials you want may not be listed on the economic web sites, and you could need to dig up the firm financials and compute your personal ratios by way of the company’s internet website.

Another issue is that most of these organizations make 4 wheelers and jet skis and such, and are not as substantial of high quality as HOG. To pick a pure play (which I would base a lot of your analysis on), look up the monetary ratios for Ducati Motors (DMH). They almost exclusively make motorcycles (like HOG), so would be more comparible. There may be other organizations out there that manufacture only motorcycles, but I cannot believe of any appropriate now.

Great Luck

P.S. If your teacher assigned this, I do not know why he/she would want to compare HOG to “recreational vehicle makers”, it would make more sense to compare the company to the automobile business.

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