Daniel Dyer
Dr. Wheatley
Financial Analysis
April 5, 2012
A Team Shoes Comparison Throughout the simulation, A Team Shoes was challenged by other companies within the industry, but overall the firm’s differentiation strategy, with an emphasis on quality, was effective. When implementing a strategy, financial ratio analysis and analytical procedures on other financial measures can be extremely helpful in gauging a strategy’s success. Throughout the simulation, A Team’s management concentrated on several financial ratios and measures to adjust strategy accordingly. A Team’s analysis of earnings per share, debt to asset ratio, current ratio, net profit percentage, total asset turnover, revenue, cash on hand, stock price, warehouse expenses, and cost per pair played a large role in the firm’s success.
Ratio Analysis * Earnings Per Share * Debt to Assets Ratio * Current Ratio * Net Profit Percentage * Total Asset Turnover

One measure A Team’s management tracked was earnings per share vs. the best in industry (if no data point A Team was the Best in the Industry). Earnings per share is a market value ratio and is calculated by dividing net income by common shares outstanding. Throughout the simulation, A Team Shoes maintained a relatively high earnings per share number. In years four, five, and six the company was able to achieve the best earnings per share in the industry. This was primarily achieved by keeping earnings high relative to the industry and purchasing a relatively large amount of treasury stock. This measure was successful in keeping investors happy throughout the simulation. Another important measure is the debt to assets ratio. This ratio is primarily a measure of long term solvency and is calculated by dividing total debt by total assets. Throughout the simulation, A Team shoes was able to maintain a debt