Case $3\mathrm{.}3$ Logitech International S$.$A$.$

Logitech International S$.$A$.$ Consolidated Statements of Operations

$($In thousands, except per share amounts$)$

Year ended March $31,$

$201320122011$

Net sales $ $2,099,883$ $ $2,316,203$ $ $2,362,886$

Cost of goods sold $1,392,5811,539,6141,526,380$

Gross profit $707,302776,589836,506$

Operating expenses:

$$Marketing and selling $431,598423,854420,580$

$$Research and development $153,922162,331156,390$

$$General and administrative $113,824118,423116,880$

$$Impairment of goodwill and other assets $216,688$

$$Restructuring charges $43,704$

$$Total operating expenses $959,736704,608693,850$

Operating income $($loss$)(252,434)71,981142,656$

Interest income, net $9072,6742,316$

Other income $($expense$),$ net $(2,198)16,6223,476$

Income $($loss$)$ before income taxes $(253,725)91,277148,448$

Provision for $($benefit from$)$ income taxes $(25,588)19,81919,988$

Net income $($loss$)$ $$(228,137)$ $$71,458$ $$128,460$

Net income $($loss$)$ per share:

$$Basic $$(1\mathrm{.}44)$ $$0\mathrm{.}41$ $$0\mathrm{.}73$

$$Diluted $$(1\mathrm{.}44)$ $$0\mathrm{.}41$ $$0\mathrm{.}72$

Shares used to compute net income $($loss$)$ per share:

$$Basic $158,468174,648176,928$

$$Diluted $158,468175,591178,790$

Cash dividends per share $ $0\mathrm{.}85$ $$$ $$$

Required:

Using the Consolidated Statements of Operations and the excerpts from the Logitech International S$.$A$.$ Form $10-$K$,$ analyze the profitability of Logitech. Your analysis should include the following calculations for all three years:

A$.$ Common$-$size income statements.

B$.$ Effective tax rates.

C$.$ Growth rates of sales and total operating costs.

d$.$ Provide a analysis and interpretation. This should include explanations for why trends have occurred. The minimum interpretation should be no less then $2$ paragraphs.