Académique Documents
Professionnel Documents
Culture Documents
Submitted by:
Sarigumba, Iris
Submitted to:
Adidas was founded in 1924 in Germany by two bothers Adi and Rudolf Dassler. The company
was first named Dassler shoes and later became Adidas. By the Dassler shoes being seen in the
Olympics this really helped the company get its name known. However, in 1948 Rudolf Dassler leaves to
start his own company which is now known as Puma. Once Rudolf left his brother came up with the
famous three stripes logo and changed the name to Adidas.
The 3 stripes were created to keep the foot stable, but ended up being the logo. Throughout the
years Adidas was seen in the Olympics, and it was the leading brand making their shoes highly sought
after by Olympic athletes. In 1978, Adi Dassler passed at age 78 and his wife Kathe ran the company. Six
years later Kathe passed and the company was left for their son Horst Dassler to run, and three years
later Horst passed at age 51. After Horsts death Adidas ran into some major financial problems, and later
Bernard Tapie comes to make an attempt to save the company.
Well to be HONEST, later down the road a hip-hop group named Run-DMC came and put Adidas
on another level just like Jordan did for Nike, and the rest is HISTORY! They even made a song called
"My Adidas", and it was a hit all around the world. After Run-DMC came to Adidas they even had their
own signature line. Run DMC is still making Adidas money today just like Jordan is still making Nike tons
of money......these guys are true legends to the "Shoe Game".
Adidas has worked with many famous people and has a signature shoe line for Stan Smith, Kevin
Garnett, Tracy McGrady aka TMAC, Missy Elliot, and many others.
Financial Ratio
Profitability
Profitability 2015-12
Liquidity
Debt/Equity 0.26
Asset Management Ratios:
Inventory 23.33
Intangibles 24.04
Efficiency 2015-12
Market Value:
2015-12
-Revenue EUR Mil 16,915
Gross Margin % 48.3
Operating income EUR Mil 1,059
Operating Margin % 6.3
Net Income EUR Mil 634
Earnings Per Share EUR 1.57
Dividends EUR 0.76
Payout Ratio % * 47.3
Shares Mil 403
Book Value Per Share * EUR 15.61
Operating Cash Flow EUR Mil 1,090
Cap Spending EUR Mil -513
Free Cash Flow EUR Mil 577
Free Cash Flow Per Share * EUR 1.78
Working Capital EUR Mil 2,133
Debt Management
Accrued Liabilities
At the moment, we can say that Nike is the leading footwear brand in the map but one cant deny
that Adidas ranks 2nd in the list. Thing is, we are not talking about whose better now. We are talking about
who's better to invest on. Investing is like choosing whom to marry, you dont only value the looks but also
whats inside such choice of look. What we are proposing here is that we cant deny that Nike really is the
top brand for sportswear today, yet we can argue that Adidas is performing better than Nike in terms of
growth. Adidas has maintained its growth through the years and its increasing from time to time. Adidas is
deeply engaged in society and culture and bring that together in performance and style. Thats why this
brand has become cool almost overnight.
In Investing, you dont look at its capacity to give but rather you look at its capacity to give more.
Compared to Nike, Adidas is far more better to invest because Adidas is the fastest growing sportswear
brand in the map.