FINANCILAL ANALYSIS

Competition Bikes Inc.

Competition Bikes Inc.

Introduction

The study is related to the financial performance of Competition Bikes pertains to managing internal cost and controlling finances, managing capital and financial assets, managing enterprise risk and continuity, and managing operations. The Competition Bikes Incorporation is the manufacturer of sports bikes for professional and other highly accomplished riders who compete in bike races, biathlons, and triathlons. The bikes produced by the company have been used by around sixty percent of the race winners. The main factor responsible for the company's popularity is the effective and positive word of mouth advertising. The company is known for the durability, reliability and high quality vehicles. In addition to this, Competition Bikes Incorporation makes bicycles for professional and other highly accomplished riders who compete in bike races, triathlons and biathlons.

Context

This paper focuses on the financial status of Competition Bikes for 3 years that are year 6, 7 and 8. This study will describe the importance of choosing the right strategy. Internal and external analysis of Competition Bikesis made in order to maintain the status in the industry. It includes the model of the strategy in use. The strategic choice of Competition Bikes makes the company a leader in the industry. The company has become an example in the strategic management because of its successful implementation of the strategy. Internal and external analysis of Competition Bikes shows the set of managerial decisions and actions that determine the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control. In addition to this, in particular, this study will focus on the evaluation of company's operational strengths and weaknesses, analysis of the working capital of Competition Bikes Incorporation, evaluation based on the internal controls for the Competition Bikes and analysis based on the compliance requirements with the Sarbanes - Oxley.

Overview

The financial performance of Competition Bikes shows that the major portion of the company's assets is not comprised of liabilities over the three years period; which is a good indication for the company as the company's short term and the long term debts are stable or decreasing. In addition to this, company's equity seems good or satisfactory that is it is high as compare to the liabilities of the Competition Bikes. Moreover, the assets structure of the company from year 6 to 8 reflect that the Competition Bike's assets structure is in good shape, which shows that, the company can meet its financial obligations that are liabilities if some sort of financial loss occurs. In addition to this, past studies states that the financial analysis are to determine whether there are liquidity problems, the study of profitability determines the evolution of the company and return on invested capital, management and analysis of related variables involved in the short term financing, obtaining rotations and time of collection and payment means.

Key Financials

(As of Year 8)

Income Statement

Revenue

5083000

Net Income

36100

Balance Sheet

Total Current Assets

1606817

Total Assets

4316817

Total Liabilities

1980200

Shareholders' Equity

2336617

Evaluation of the Company's Operational Strengths and Weaknesses

Horizontal Analysis

In relation to the Competition Bikes operational ...