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9. Harley Davidson, Inc., the iconic motorcycle company, has the fol- lowing rat

ID: 2727733 • Letter: 9

Question



9. Harley Davidson, Inc., the iconic motorcycle company, has the fol- lowing ratios for the years 2000 through 2004 2000 2001 2002 2003 2004 Profit margin (%) Retention ratio (%) Asset turnover (X) Assets (end of year, millions) Equity (end of year, millions) Growth rate in sales (%) 11.4 123 13.5 91.3 91.9 92.8922866 1.25 1.14 1.11 1.00 0.97 155 167 $5483 $3,219 $2,436 $3,118 $1,756 $3,861 $4,923 $2,233 $2,958 $1,406 178 16.4 21.4 14.0 8.5 a. Calculate Harley Davidson's annual sustainable growth rate fronm sons annu 2001 through 2004.

Explanation / Answer

SOLUTION A. 2001 2002 2003 2004 GROWTH RATE 16.4 21.4 14 8.5 GROWTH 5 -7.4 -5.5 B.HARLEY DAVIDSON HAVE A GROWTH PROBLEM IN YEAR 2003,2004. C. IT CAN BE COP WITH SUSTAINABLE GROWTH BY INCREASE SALE