Dirt bikes

Javier Sierra
SCI 600
Prof. Dr/Ing Victor Vazquez

Dirt Bikes USA
Chapter 2

Analyzing Financial Performance

1. What are Dirt Bike’s best- and worst-performing products? What is theproportion of domestic to international sales? Have international sales grown relative to domestic sales?
2. Are sales (revenue) growing steadily, and, if so, at what rate? What is the cost of goodssold compared to revenues? Is it increasing or decreasing? Are the firm’s gross and net margins increasing or decreasing? Are the firm’s operating expenses increasing or decreasing? Is the firmheavily in debt? Does it have assets to pay for expenses and to finance the development of new products and information systems?
3. (Optional) Use electronic presentation software to summarize youanalysis of Dirt Bike’s performance for management

Answers:

Dirt Bike’s best performing model is the Enduro 550. In 2004 total sales were down for all models except the Moto 300 and Moto 450 .The Moto 300 and Moto450 have been showing a steady increase for the past 5 years. Even though the Moto 300 did not have a big increase in 2004 it was still increasing. The problem with the Moto300 is that it increased but is still the lowest performing model. This is evident on the graph below.
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Javier Sierra
SCI 600
Prof. Dr/Ing Victor Vazquez

[pic]

In this graph we cansee how the total sales were growing and over sudden in 2004 they dropped for all models. Also, we can see how the Moto 450 had an increase, but still have low sales, increasing but low, compared tothe Enduro Models.

Javier Sierra
SCI 600
Prof. Dr/Ing Victor Vazquez

International sales are a 9.8% of all total sales. They have been growing a little more than domestic sales, withthe exception of 2003 and 2004 that they decrease together with the domestic sales for about a 1%.

[pic]

Revenues were growing, not steadily, but growing. From 2002 to 2003 the revenues...