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Columbia Sportswear Stock Analysis

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The business started as a family business that developed slowly to reach the global market after the purchase of a small company Columbia Hat Company turning into today’s huge company Columbia Sportswear (Columbia History). Tis means that the current assets are in position to cover all the current liabilities of the company 4.15 times which means the company has a reasonable working capital that can take care of the business needs of the company. Wrking capital is current assets minus current liabilities which results into (working capital = current – current liabilities = 1250472-301254= 949218)Total debt ratio helps determine how much debt is placed in the assets and in each asset.

I is determined by the formula Total Debt/Total Assets = the company has no debts for the year 2013. Cnsidering this, te total debt ratio is zero. Tis means that the assets of the company are much financed by equity and the other short-term liabilities that include payables. Te results indicate that the inventory is 2.86 times more per COGS. CGS relate to the goods that have sold and the inventory relates to the balance of the stock at the close of the financial year.

Ttal Asset Turnover relates to the number of times that the assets of the company relate to the sales in relation to how the assets influence the sales. Dtermining Total Asset Turnover, te formula Sales/total assets comes to consideration. RE determines the much that the shareholder’s return on each amount of sales. Te contribution of the shareholder’s equity in producing sales, wich is determined by Net Sales/Shareholder’s Equity. Mrket to book relates to the market price per share in the current market in relation to the book value of each share.

Te formula for determining this is Market price per share/book value per share. Dtermining these values exposes the company’s ability to remain profitable for a longer period and how much of the company’s resources goes into paying debts. I determines the asset level of the business and the relationship that the assets have with the other balance sheet aspects and income statement aspects. Trough these analyses, adecision in relation the purchase or sale of shares in the company is reachable leading to prudent decisions with regard to the company stocks.

P= Do(1+g)/r-g=D1/(r-g) where, P is the stock price at time zero, D...

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