Callaway Golf Company
Financial Analysis Report

Callaway Golf Company is a global sporting goods company, specializing in the sport of golf, which designs, manufactures and sells golf equipment, golf accessories and other products that are associated with golfing. Callaway Golf distributes to over 70 countries all over the world. Callaway Golf owns the largest maker of golf clubs in the world, located in Carlsbad, California. Callaway Golf sells its products through sporting goods retailers, golf retailers, through mass merchants, and even directly from their own website http://www.callawaygolf.com/global/en-us.html . Callaway Golf licenses its name, trademarks and service marks for everyday apparel, shoes, golf bags, headwear, watches, rings, rangefinders, practice aids, and travel gear (duffel bags, suitcases, etc…) According to the numbers it appears as if Callaway Golf as a company is dipping. Their net income is negative. They are relying more heavily on debt financing to run their company, and since the majority of their current assets rest in inventory could be problematic if the company needed to liquidate to pay off a loan and needed to sell off some of what is used to produce their goods. This is the third straight year, according to the reports, that Callaway Golf Company has taken a net loss for the year and it doesn’t seem to be correcting itself any time soon. I wouldn’t go anywhere near this company if I was an investor or potential stockholder as most of the ratios below would attest to.

1. Liquidity Ratio a. Current Ratio for Callaway Golf Company in 2012: Current Assets/Current Liabilities i. (In Thousands) 386,996/161,566 = 2.395 b. CR in 2011 ii. (in Thousands) 419,329/167,784 = 2.499 1. Callaway Golf Co. has by far met the ability to meet its current financial