DB5 Unit 5

After watching the two videos on creating slide decks, create a short 3-6 slide deck around one of the below topics:

The economic health of a publicly traded company

Select a company from the following list.

SMALL CAP Companies – List of Small-Cap Stocks ($300M – $2B Market Cap) – Stock Analysis- Stock Analysis

MID CAP Companies – List of Mid-Cap Stocks ($2B – $10B Market Cap) – Stock Analysis  – Stock Analysis

Facts and figures about a country.

In response to your peers, what do you think of your peers’ slide deck? Would you have presented the data differently?

Question 2 (ungraded):

Is there any data, market, or analytics news that you have found interesting lately?

Economic Health of Levi
Strauss & Co.
Oscar Hernandez
Levi Strauss & Co. Overview

– Founded: 1853

– Headquarters: San Francisco, California, USA

– Industry: Apparel

– Market Cap: $8.83 billion

– Stock Symbol: LEVI
Recent Financial Performance

– Revenue: $6.05 billion

– Net Income: $553 million

– Earnings Per Share (EPS): $1.33

– P/E Ratio: 22.14
Market Position and Strategy

Market Position:

– Global Presence: Operates in over 50 countries

– Key Brands: Levi’s, Dockers, Denizen, and Signature by Levi Strauss & Co.

Strategic Initiatives:

– Digital Transformation: Investing in e-commerce and digital channels

– Sustainability: Commitment to sustainable practices and materials

– Innovation: Development of new product lines and technologies
Key Challenges and Opportunities

Key Challenges:

– Supply Chain Disruptions: Impact on production and distribution

– Competitive Market: Intense competition from other apparel brands

Opportunities:

– Growing E-commerce: Increased online sales and direct-to-consumer
channels

– Brand Loyalty: Strong customer loyalty and brand recognition
Conclusion

Overall Health:

– Levi Strauss & Co. is financially stable with strong revenue and profit
margins.

Future Outlook:

– Positive outlook driven by digital growth and sustainability efforts.
References

Stock Analysis. (n.d.). List of Mid-Cap Stocks ($2B – $10B Market Cap) – Stock
Analysis. Retrieved from https://www.stockanalysis.com

Levi Strauss & Co. (n.d.). Company Overview. Retrieved from

Levi Strauss Home


Yahoo Finance. (n.d.). Levi Strauss & Co. (LEVI) Stock Price, News, Quote &
History. Retrieved from https://finance.yahoo.com

MarketWatch. (n.d.). Levi Strauss & Co. Financials. Retrieved from
https://www.marketwatch.com
27th May 2024
KRISHNA KUMARI SANDAPALLI
Spotify Technologies S.A
•Founded: 2006
•Headquarters: Stockholm,
Sweden
MARKET LEADER
•Market Cap: ∼$3 billion
•Core Product: Spotify app
•Primary Business: Music
streaming services,
podcasts
(+16% from previous year)
+30% from previous year
(reduced losses from previous year)
Apple, Amazon, YouTube
Global music streaming market
.
Expansion to Increase AD revenue
Revenue Increase Projection
Investment to enhance user
experience
REFERENCES
. Yahoofinance. (2023, December 26). Spotify technology S.A.
https://finance.yahoo.com/quote/SPOT/profile?p=SPOT&guccounter=1
Spotify. (2023). Quarterly Results.
https://investors.spotify.com/financials/default.aspx#annual
Statista. (2024, May 15). Spotify – statistics & facts.
https://www.statista.com/topics/2075/spotify/#topicOverview
Assessing the
economic health of
LVMH
Jannek Rabe
To assess the economic health of a company one must answer
three questions.
How to assess economic health of a company?
Does the
company make
money?
It is important to understand if the company makes money today, as this is the goal of a business.
Can the company
pay its debt?
Almost all companies are financed with debt. The ability to pay the debt is an indicator of financial stability both
now and when times get worse.
Will the company
be successful in
the future?
The future outlook on the business, including factors such as competition in the industry, can indicate whether
the company will make money and be able to pay its bills in the future.
LVMH, as a business, shows stable income streams.
Does the company make money?
Conclusion
Revenue and Net Income
Billion-$
• LVMH revenue was positive
the last three years
Revenue
86.2
Revenue
79.2
• Net income is positive in
the last three years,
indicating that the business
makes money in the billions
Revenue
62.2
• Both revenue and net
income show stable growth
Net Income
12.0
2021
Source: LVMH (n.d., A)
Net Income
14.1
Net Income
15.2
The company is highly
profitable!
2022
2023
LMHV can cover short-term debt with its money.
Can the company pay its debt?
Current ratio of assets to liabilities
Conclusion
Billion-$
43.2
Current Ratio:
1,3
33.1
Current
Assets
Source: LVMH (n.d., B)
Current
Liabilities
• LVMH can cover its short-term debt with its highly liquid
assets, as indicated by having 1.3 times the value of shortterm assets compared to short-term liabilities.
• This shows financial stability in the short-term
LVMH is financed in a healthy way, when compared with direct
competitors and the industry.
Can the company pay its debt?
Conclusion
44%
39%
40%
• With 44% equity financing,
LVMH demonstrates a more
stable financial structure than
its direct competitors and the
industry as a whole.
• In the long term, this stability
indicates that LVMH can sustain
economic crises and remain
solvent.
LVMH
Kering
Industry Benchmark
44% Equity financed.
(brands like Dior, Gucci
etc.)
39% Equity financed.
Luxury retail industry
benchmarks are between
40% and 50%.
Sources: Kering (2024), LVMH (n.d.,B)
The future performance of a company can be analyzed on the
basis of three factors
Will the company be successful in the future?
01
REVENUE AND INCOME TRENDS
02
INDUSTRY TRENDS
03
ECONOMIC DEVELOPMENTS
Past revenue and income trends of the company can predict future outcomes.
Industry trends are important for the future of a business. When the industry is projected to see growth in the future
the company will most likely profit as well.
The economic developments are also important when predicting the future of a business. Crisis can threaten a
company, especially when it is highly debt financed.
Both industry and company are on track to do well in the future.
Will the company be successful in the future?
Revenue and Profit LVMH
(2019-2023)
Luxury goods industry projected
growth (2024-2028)
Billion-$
%
Revenue
Revenue Growth
Net Income
20
90
15
60
10
30
5
0
0
2019
2020
2021
2022
2023
LVMH
Strong growth in the last five years, with
only minor slow down, lead to the
assumption that further growth will
happen in the future.
Sources: LVMH (n.d., B), LVMH (2020), LVMH (2022), Statista (2024)
2024
2025
2026
2027
2028
Industry
Revenue in the whole industry is expected to
grow over the next five years, every year.
All three indicators of future financial performance lead to a
positive outlook.
Will the company be successful in the future?
Revenue and income show
a positively growing trend,
indicating that LVMH will
experience growth in the
future.
The industry is
projected to experience
growth in the future.
Economic development
Even through economic
hardships, LVMH has
grown in the past.
However, there is
always a risk of an
economic crisis affecting
the future development
of the company.
A strong financial performance, the ability to pay both short- and
long-term debt, and positive future projections indicate that
LVMH is economically healthy.
Strong income
Can pay debt
Financial Health
Positive future
projections
Sources
• Kering. (2024, Feb 8). 2023 Annual Results. Kering.
https://www.kering.com/api/downloadfile/?path=Kering_Press_release_2023_Full_year_results_3388f09c4c.pdf
• LVMH. (n.d.,A). 2023 Annaul Report. LVMH. https://r.lvmhstatic.com/uploads/2024/03/lvmh_2023-annual-report.pdf
• LVMH. (n.d.,B). Financial Indiactors. LVMH.
https://www.lvmh.com/investors/profile/financial-indicators/#groupe
• LVMH. (2022, Jan 27). New records for LVMH in 2021. LVMH.
https://www.lvmh.com/news-documents/press-releases/new-records-for-lvmh-in2021/
• LVMH. (2020, Jan 28). Record Results for LVMH in 2019. LVMH.
https://www.lvmh.com/news-documents/press-releases/record-results-for-lvmh-in2019/
• Statista. (2024, Mar). Luxury Goods. Statista. Date Retrieved: 2024, May 27.
https://www-statista-com.postu.idm.oclc.org/outlook/emo/luxury-goods/worldwide