Adidas Financial Performance From Time to Time-Adidas is the main company in the fashion industry. In sports Industries, Adidas still become the main company with diverse products of sports apparel. By 2021, this company 2,200 own retail stores with 114 independent manufacturing partners across the globe. Based on the production in 2021, Adidas produces 340 million pairs of Footwear, 482 million units of apparel, and 116 million accessories and gear. Based on the employee, the company still employs 61 thousand people around the world.
Historically, this company started with Aldof Dassler, and Rudolf Dassler creates the sports shoes in his mother’s house together with his elder brother, Rudolf Dassler. On its way, the difference in their views and incompatibility between Adolf and Rudolf makes them to break up. They work separately. Adolf established Adidas and Rudolf became the founder of Puma. Officially, in relation to Adidas, this company, Adidas, was founded in July 1924 by Adolf Dassler.
For its long journeys in the Sports Apparel business, Adidas has a special identity in its products. The three stripes also became the identity of Adidas. Now, operationally, this company has its main office in Herzogenaurach, Bavaria, Germany. Based on the country’s production, some production areas are in some regions, especially in Asia with a partnership agreement with local producers. The footwear production were concentrated in Indonesia, Vietnam, and China. The Apparel production was produced mainly in Cambodia, China, and Vietnam. The accessories and Gear were produced in China, Turkey, and Pakistan.
Because of the success of their business, Adidas can sponsor some events, clubs, tournaments, and famous sports athletes. Some famous athletes have big contracts with Adidas. Lionel Messi, Mo Salah, David Beckham, and the other athletes are some of the famous athletes that have cooperated with Adidas. At the level of clubs, some famous clubs are also interested in cooperating with Adidas. They have big contracts with Adidas. Real Madrid, Juventus, and Manchester United are some of the clubs that have contracts with Adidas.
The assets, Liabilities, and Equities of Adidas.
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| Million Euro | Million Euro | Million Euro | |
| 2009 | 8,875 | 5,099 | 3,776 |
| 2010 | 10,618 | 5,995 | 4,623 |
| 2011 | 11,380 | 6,049 | 5,331 |
| 2012 | 11,651 | 6,360 | 5,291 |
| 2013 | 11,599 | 6,118 | 5,481 |
| 2014 | 12,417 | 6,799 | 5,618 |
| 2015 | 13,343 | 7,695 | 5,648 |
| 2016 | 15,176 | 8,721 | 6,455 |
| 2017 | 14,552 | 8,117 | 6,435 |
| 2018 | 15,612 | 9,248 | 6,364 |
| 2019 | 20,680 | 13,622 | 7,058 |
| 2020 | 21,053 | 14,599 | 6,454 |
| 2021 | 22,137 | 14,618 | 7,519 |
| Source : Adidas AG Annual Report, 2009-2021 | |||
Based on the Financial Position of Adidas from 2009 to 2021 (Balance sheet), this company keeps stable in guarding its position. In 2009, the assets of Adidas were just 8.8 billion Euro and Equities around 3.7 billion Euro. Meanwhile, after a decade, in 2021, the assets become 22.1 billion euros and equities around 7.5 billion euros.
The Revenue and Net income of Adidas
| Years | Revenue | Net Income |
|---|---|---|
| Million Euro | Million Euro | |
| 2009 | 10,381 | 245 |
| 2010 | 11,990 | 568 |
| 2011 | 13,344 | 670 |
| 2012 | 14,883 | 524 |
| 2013 | 14,492 | 790 |
| 2014 | 14,534 | 496 |
| 2015 | 16,915 | 640 |
| 2016 | 18,438 | 1,020 |
| 2017 | 21,218 | 1,100 |
| 2018 | 21,915 | 1,704 |
| 2019 | 23,640 | 1,977 |
| 2020 | 18,435 | 443 |
| 2021 | 21,234 | 2,158 |
| Source : Adidas AG Annual Report, 2009-2021 | ||
In the financial performance aspects, Adidas AG can keep a consistent net income/profit from time to time. Based on the consolidated income statement of Adidas, the revenue of Adidas in 2009 reached 10.3 billion Euro, with a net income of around 245 million Euro. Meanwhile, in 2021, the revenue and income can still grow. In that year, the revenue of Adidas becomes 21.2 billion Euro and its net income becomes 2.1 billion Euro.
From this view, in the decade, the business of Adidas can grow because the profit of Adidas from 2019 to 2021 showed a positive trend. Statistically, this company can generate a net income from 2009 to 2021.
Based on some financial ratios, Adidas showed some value in its financial indicators. The Debt to equity ratio is about 1.4. This value is the average value from 2009 to 2021. Basically, the value of 1.4 means that every one dollar of equity contains liabilities of about 1.4 US dollars. Meanwhile, the value of the debt to asset ratio (DAR) is about 0.58 on average. Basically, it means that the value of liabilities
is 58% of the assets, or it means that every one dollar of an asset can contain 0.58 US dollars of liability. The value of the Debt to equity ratio (DER) and Debt asset ratio (DAR) showed the financial structure of the company. This value should be low because the lower the value, the better and the healthiest the company.
Based on the performance of the company, the Net profit margin (NPM), Adidas’s NPM value is around 0.052 or 5.2%. Basically, this value means that the net income of the company is about 5.2% of the revenue. Overall, this indicator describes the efficiency of the company in doing its business.
Bibliography of Adidas Financial Performance From Time to Time.
Adidas. 2022. Financial Report. Accessed via https://www.adidas-group.com/en/investors/financial-reports/ on March 30th, 2022.
