John Deere Case Study
Contents OVERVIEW OF JOHN DEERE 3 A. PRODUCTS 3 B. MARKET CONDITIONS 4 C. COMPETITIVE LANDSCAPE 6 II. 2012 FINANCIAL STATEMENT ANALYSIS 7 A. REVIEW OF INCOME STATEMENT AND BALANCE SHEET 7 B. REVIEW OF KEY FINANCIAL RATIOS 11 C. REVIEW OF FINANCING ACTIVITIES 16 D. RECOMMENDATIONS – Business Performance Improvement 19 E. RECOMMENDATIONS – Buy/Sell/Hold Strategy 20 III. APPENDIX 21 IV. EXHIBIT 2 - ACCOUNTING POLICIES 22 V. Bibliography 24 VI. DEERE & COMPANY – 2012 10K financial statements 25 A. CONSOLIDATED INCOME STATEMENT 25 B. CONSOLIDATED BALANCE SHEET 26 C. CONSOLIDATED STATEMENT OF CASH FLOWS 27
OVERVIEW OF JOHN DEERE
John Deere …show more content…
In addition, it could affect the customer’s buying decision, borrowing and repayment practices, and the default rates.
Agriculture and Turf: The Company’s agricultural equipment business is dependent on many interrelated factors such as worldwide economic conditions, demand for agricultural products, weather and soil conditions, prices for commodity and livestock, and growth of non-food uses for some crops. Changes in government farm programs and policies also affect the farmer’s confidence and hence demand of equipment. Conditions affecting the forecast for the company’s turf and utility equipment include global economic conditions, weather conditions, consumer borrowing patterns, consumer brand loyalty, home construction, infrastructure investment, and spending by local governments. The sales forecast in various regions are as follows: * Agricultural machinery in US and Canada are forecasted to be about the same in 2013 compared to prior year. Even if there is a continued demand for high horsepower tractors, it is offset by caution around livestock and dairy sectors. Turf and utility equipment sales are projected to grow by 5% in US and Canada due to improvement in US economy. The company’s sales are higher than the industry average due to introduction of new products. * Sales in EU27 are forecasted to be the