The Golf Industry Case Study Case Synopsis The case outlined the golf industry decline from manufacturing to retailing to the management of courses and clubs. Financial statements are presented for Callaway Golf, a manufacturer, and for ClubCorp, a management firm that owned and operated over 200 courses before it was purchased and taken private in 2017. A quick overview of the weakness in sport retailing was also given. Finally, three course pros discussed their diagnosis of the industry, and what actions could bring golfers back to the course. Case Objectives and Use The case is intended for a course in financial statement analysis or an introductory course in sport finance. The case outlines the difficulties facing the entire golf industry from manufacturing to retailing to management of courses and clubs. Over the past ten years millennials, minorities, and women have not shown an interest in golf. It is feared the industry is following the male baby boomers into the grave. Can golf be saved? Students are required to perform a DuPont analysis of the return on equity and a cash flow analysis of two segments of the industry: manufacturing and a formerly public company that managed golf courses and clubs. Then the student will evaluate actions taken by golf course managers at three different types of golf club: municipal, private, and public. The student will make recommendations to salvage the deteriorating state of golf play in the United States. DuPont analysis is a performance measurement method started by the DuPont Corporation in the 1920s. Using this method, assets are measured at their gross book value rather than at net book value to produce a higher return on equity (ROE). ROE is affected by three things: operating efficiency, which is measured by profit margin; asset use efficiency, which is measured by total asset turnover; and financial leverage, which is measured by the equity multiplier. These three elements are the key to this analysis. DuPont analysis is renresented in mathematical form by the following calculations 1. Perform a three-part DuPont ROE analysis for Callaway. How is the firm performing in the three parts? What are your conclusions on the future of Callaway? 2. Perform a cash flow analysis of Callaway. How is the company performing? What are your conclusions on the future of Callaway? 3. Callaway is struggling in a declining industry. Many large golf companies are cutting back the business or trying to entirely exit the industry. What actions would you recommend Callaway take to insure its success in the industry? The Golf Industry Case Study Case Synopsis The case outlined the golf industry decline from manufacturing to retailing to the management of courses and clubs. Financial statements are presented for Callaway Golf, a manufacturer, and for ClubCorp, a management firm that owned and operated over 200 courses before it was purchased and taken private in 2017. A quick overview of the weakness in sport retailing was also given. Finally, three course pros discussed their diagnosis of the industry, and what actions could bring golfers back to the course. Case Objectives and Use The case is intended for a course in financial statement analysis or an introductory course in sport finance. The case outlines the difficulties facing the entire golf industry from manufacturing to retailing to management of courses and clubs. Over the past ten years millennials, minorities, and women have not shown an interest in golf. It is feared the industry is following the male baby boomers into the grave. Can golf be saved? Students are required to perform a DuPont analysis of the return on equity and a cash flow analysis of two segments of the industry: manufacturing and a formerly public company that managed golf courses and clubs. Then the student will evaluate actions taken by golf course managers at three different types of golf club: municipal, private, and public. The student will make recommendations to salvage the deteriorating state of golf play in the United States. DuPont analysis is a performance measurement method started by the DuPont Corporation in the 1920s. Using this method, assets are measured at their gross book value rather than at net book value to produce a higher return on equity (ROE). ROE is affected by three things: operating efficiency, which is measured by profit margin; asset use efficiency, which is measured by total asset turnover; and financial leverage, which is measured by the equity multiplier. These three elements are the key to this analysis. DuPont analysis is renresented in mathematical form by the following calculations 1. Perform a three-part DuPont ROE analysis for Callaway. How is the firm performing in the three parts? What are your conclusions on the future of Callaway? 2. Perform a cash flow analysis of Callaway. How is the company performing? What are your conclusions on the future of Callaway? 3. Callaway is struggling in a declining industry. Many large golf companies are cutting back the business or trying to entirely exit the industry. What actions would you recommend Callaway take to insure its success in the industry