Germany-based sportswear retailer PUMA AG Rudolf Dassler Sport reported the following selected information (in EUR millions, except per share data) for the years ended December 31, 2010 and 2009:

PUMA has no preferred shares.
Instructions
(a) Calculate the asset turnover, return on assets, and return on common shareholders' equity ratios for each year. Evaluate PUMA's change in profitability.
(b) Calculate the earnings per share, price-earnings, payout, and dividend yield ratios for each year. Discuss the implications of your findings for investors.
(c) Discuss the implications of comparing Germany-based PUMA with its key competitors, Adidas, also headquartered in Germany, and Nike, headquartered in the United States.
(d) If you wished to compare PUMA's profitability with that of a private company following ASPE, what considerations should you keep in mind? Explain.

Transcribed Image Text:

2010 Net sales Average total assets Average shareholders' equity Total dividends Profit Weighted average number of shares Cash dividend per share Price per share 2,706.4 2,145.8 1,259.8 27.1 202.2 15.0 1.80 248.00 2,447.3 1,880.1 1,126.3 41.5 77.3 15.1 1.80 231.84