Annual Report
Harley Davidson
Brett Aleshire
ACG2021. 080
Part A. Introduction
Jeff Bluestein
Milwaukee, Wisconsin
December 31st
Harley Davidson is a company that builds the
most famous and sought after motorcycles in
the world.
The main geographic area is in the United States,
but Harleys are sold and ridden all over the
world.
Part A. Audit Report
Ernst & Young LLP.
The auditors stated that Harley Davidson’s
management is very effective.
Part A. Stock Market Information
$ 60.75 per share
Twelve month
0.405 per share
December 31st 2004
The stock looks like it is on the rise and with the
increase in gas prices motorcycles should
become more popular, therefore I would buy.
Part B. Industry Situation and
Company Plans
The industry will always be strong and will
always be around. Harley looks to keep growing
and going strong.
Annual Report
Harley
Part C. Income Statement
This is a multi-step 2004 2003
format
The company seems to Gross 1899535 1665566
have grown quite a bit in Profit
a one year span. It Inc. 1361491 1149264
increased in all of the from
areas. Op.
Net 889766 760928
Inc.
Part C. Balance Sheet
Balance Sheet 2004 2003
Assets= Liabilities + Stockholders
Equity
(2004) 5,483,293 (2004) 2264822 3218471
(2003) 4923088 1965396 2957692
Part C. Statement of Cash Flows
In 2004 the cash flow from operations was more
than net income, but in 2003 it was less.
The company is growing and recently opened up
a new plant.
Harleys main source of financing is long-term
loans.
Cash has decreased over the past two years.
Part D. Accounting Policies
The company is in a joint venture with Porsche
and their significant policy is the Qualifying
Special Purpose Entities.
Net Cash provided by operating activities
Reclassifications
Wholesale Loan Activity
Part E. Financial Analysis Liquidity
Ratios
2004 2003
Working Capital 2093576 1773354
Current Ratio 2.78 2.86
Receivable Turnover 4.5 times 5 times
Average days sales Unc. 81 days 73 days
Inventory turnover 13.73 14.24
Avg. days inv. On hand 26.58 25.63
Part D. Financial Analysis
Profitability Ratios
2004 2003
Profit Margin 17.7% 16.5%
Asset turnover 1.83 1.88
Return on Assets 32.5% 31 %
Return on equity 55.2% 51.4%
Part E. Financial Analysis Solvency
Ratio
2004 2003
Debt to equity .36 .32
Part E. Financial Analysis Market
Strength Ratios
2004 2003
Price per share $22.92 $17.73
Earnings per share $3.02 $2.52
Executive Summary
Harley Davidson is a world renowned company
and has always been imitated, but never
duplicated. This company should always be
strong, because their motorcycles give the
average person the feeling that they are flying
while riding a Harley.
Financial Statement