Harley Davidson's current stock price is around $65 per share a more than 30% increase for the year. Its sales have increased over the last three years with the last year’s sales almost reaching the $6 Billion mark. With the increase in sale has brought along the increase in net income. Harley Davidson has grown from a net income of $550 million to $734 million in just two years. In that same time Harley has increased its dividend payments from $.47 per share to $1.10 per share.
The P/E ratio of Harley Davidson is lower than both the industry and S&P 500 average. This informs the potential investor that Harley Davidson is selling at more of a discount than that of its peers.
Harley Davidson's current ratio is substantially lower than its industry peers and very close but still lower than the average of the S&P 500. This represents the ability to pay short term obligations. Harley Davidson is still able to cover all of its short term debt 1.6 times but is still more highly leveraged than its peers.
After removing inventories from the current ratio Harley Davidson is in better standing when compared to the industry average and just slightly below the average of the S&P 500. This provides true information of the company’s liquidity to the investor.
Harley Davidson is much more leveraged in financing its operations than its peers in their industry by almost 9 times and almost 2 times higher than the average of the S&P 500. However this increase in debt to finance operations has grown Harley Davidson and allowed them to achieve a much higher net profit margin than that of the industry average.
Harley Davidson's price to sales ratio is significantly higher than both its industry peers and the S&P 500. The higher price to sales indicates investors have given Harley Davidson a premium valuation over its peers and the average of the S&P 500. This is also