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Company Overview
True Religion Apparel, Inc. (True Religion) is an US based in-store retailer. The company principally designs, markets, distributes and sells high fashion denim jeans in a wide variety of styles under the True Religion Brand Jeans trademarks. True Religion operates through four reportable business segments, which include US Wholesale; International Wholesale; Consumer Direct Channel; and Other. The company sells its products through retail stores and boutiques in 50 countries across the world including North America, Europe, Asia, Australia, Africa and South America. True Religion Apparel, Inc. was formerly known as Gusana Explorations Inc. It is headquartered in Vernon, California, the US.
Key Executives
Name Jeffrey Lubell Joseph H. Coulombe G. Louis Graziadio, III Robert L. Harris, II Mark Maron Chairman Director Director Director Director Title
SWOT Analysis
True Religion Apparel, Inc., SWOT Analysis Strengths Strong Growth Prospects Efficient Use of Resources Weaknesses Reliance on Contract Manufacturing Increasing Operating Expense
Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData
Share Data
True Religion Apparel, Inc. Share Price (USD) as on 10-Oct2011 EPS (USD) Market Cap (million USD) Enterprise Value (million USD) Shares Outstanding (million)
Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData
Financial Performance
Recent Developments
Apr 08, 2010 Mar 16, 2010 Mar 13, 2010 Mar 01, 2010 True Religion opens store at The Westchester in New York True Religion inaugurates new retail store in Charlotte, North Carolina True Religion to debut in London True Religion launches new store in Walnut Creek, California
Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Table of Contents
Table of Contents ............................................................................................................................................................................... 2 List of Tables ...................................................................................................................................................................................... 3 List of Figures ..................................................................................................................................................................................... 3 Section 1 - About the Company.......................................................................................................................................................... 4 True Religion Apparel, Inc. - Key Facts .............................................................................................................................................. 4 True Religion Apparel, Inc. - Key Employees ..................................................................................................................................... 5 True Religion Apparel, Inc. - Key Employee Biographies ................................................................................................................... 6 True Religion Apparel, Inc. - Major Products and Services ................................................................................................................ 7 True Religion Apparel, Inc. - History................................................................................................................................................... 8 True Religion Apparel, Inc. - Company Statement ............................................................................................................................. 9 True Religion Apparel, Inc. - Locations And Subsidiaries ................................................................................................................. 11 Head Office ................................................................................................................................................................................... 11 Other Locations & Subsidiaries ..................................................................................................................................................... 11 Section 2 Company Analysis ......................................................................................................................................................... 13 True Religion Apparel, Inc. - Business Description .......................................................................................................................... 13 True Religion Apparel, Inc. - SWOT Analysis ................................................................................................................................... 15 SWOT Analysis - Overview........................................................................................................................................................... 15 True Religion Apparel, Inc. - Strengths ......................................................................................................................................... 15 Strength - Strong Growth Prospects.......................................................................................................................................... 15 Strength - Efficient Use of Resources ....................................................................................................................................... 15 Strength - Strong Liquidity Position ........................................................................................................................................... 15 Strength - Diversified Product Portfolio ..................................................................................................................................... 15 Strength - Strong Financial Performance .................................................................................................................................. 15 True Religion Apparel, Inc. - Weaknesses .................................................................................................................................... 16 Weakness - Reliance on Contract Manufacturing ..................................................................................................................... 16 Weakness - Increasing Operating Expense .............................................................................................................................. 16 True Religion Apparel, Inc. - Opportunities ................................................................................................................................... 16 Opportunity - Expansion Strategy ............................................................................................................................................. 16 Opportunity - Strategic Agreements .......................................................................................................................................... 16 Opportunity - Rising Popularity of Online Shopping .................................................................................................................. 16 Opportunity - Huge Potential in the Emerging Markets ............................................................................................................. 17 True Religion Apparel, Inc. - Threats ............................................................................................................................................ 17 Threat - US Economic Slowdown .............................................................................................................................................. 17 Threat - Changing Fashion Trends ........................................................................................................................................... 17 Threat - Growing Competitive Market........................................................................................................................................ 17 Threat - Rising Counterfeit Goods Market ................................................................................................................................. 17 True Religion Apparel, Inc. - Key Competitors ................................................................................................................................. 19 Section 3 Company Financial Ratios ............................................................................................................................................. 20 Financial Ratios - Capital Market Ratios........................................................................................................................................... 20 Financial Ratios - Annual Ratios ...................................................................................................................................................... 20 Performance Chart ........................................................................................................................................................................... 22 Financial Performance...................................................................................................................................................................... 22 Financial Ratios - Interim Ratios....................................................................................................................................................... 23 Financial Ratios - Ratio Charts ......................................................................................................................................................... 24
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
True Religion Apparel, Inc., Recent Deals Summary ....................................................................................................................... 25 Section 4 Companys Recent Developments ................................................................................................................................ 26 True Religion Apparel, Inc., Recent Developments ...................................................................................................................... 26 Apr 08, 2010: True Religion opens store at The Westchester in New York............................................................................... 26 Mar 16, 2010: True Religion inaugurates new retail store in Charlotte, North Carolina ............................................................. 26 Mar 13, 2010: True Religion to debut in London ....................................................................................................................... 26 Mar 01, 2010: True Religion launches new store in Walnut Creek, California........................................................................... 27 Feb 24, 2010: True Religion Apparel reports rise in total net sales ........................................................................................... 27 Feb 23, 2010: True Religion opens its new retail outlet in Portland, Oregon............................................................................. 28 Section 5 Appendix ....................................................................................................................................................................... 29 Methodology ................................................................................................................................................................................. 29 Ratio Definitions ............................................................................................................................................................................ 29 About GlobalData ......................................................................................................................................................................... 33 Contact Us .................................................................................................................................................................................... 33 Disclaimer ..................................................................................................................................................................................... 33
List of Tables
True Religion Apparel, Inc., Key Facts ............................................................................................................................................... 4 True Religion Apparel, Inc., Key Employees ...................................................................................................................................... 5 True Religion Apparel, Inc., Key Employee Biographies .................................................................................................................... 6 True Religion Apparel, Inc., Major Products and Services ................................................................................................................. 7 True Religion Apparel, Inc., History .................................................................................................................................................... 8 True Religion Apparel, Inc., Other Locations .................................................................................................................................... 11 True Religion Apparel, Inc., Subsidiaries.......................................................................................................................................... 12 True Religion Apparel, Inc., Key Competitors................................................................................................................................... 19 True Religion Apparel, Inc., Ratios based on current share price .................................................................................................... 20 True Religion Apparel, Inc., Annual Ratios ....................................................................................................................................... 20 True Religion Apparel, Inc., Interim Ratios ....................................................................................................................................... 23 True Religion Apparel, Inc., Recent Deals Summary ....................................................................................................................... 25 Currency Codes ............................................................................................................................................................................... 29 Capital Market Ratios ....................................................................................................................................................................... 29 Equity Ratios .................................................................................................................................................................................... 30 Profitability Ratios ............................................................................................................................................................................. 30 Cost Ratios ....................................................................................................................................................................................... 31 Liquidity Ratios ................................................................................................................................................................................. 31 Leverage Ratios ............................................................................................................................................................................... 32 Efficiency Ratios ............................................................................................................................................................................... 32
List of Figures
True Religion Apparel, Inc., Performance Chart (2006 - 2010) ........................................................................................................ 22 True Religion Apparel, Inc., Ratio Charts ......................................................................................................................................... 24
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
TRLG [NASDAQ]
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Jeffrey Lubell Job Title: Chairman, Chief Executive Officer Board Level: Executive Board Since: 2003 Age: 53
Pete Collins Job Title: Chief Financial Officer Board Level: Senior Management Since: 2007 Age: 44
Mr. Collins has been the Chief Financial Officer of the company since 2007. Prior to this, he worked as a divisional Vice President, the Corporate Controller and the Principal Accounting Officer for Nordstrom, Inc. from 2004 to 2007. Previously, he led many financial positions with Albertsons, Inc., from 2002 to 2004.
Michael F. Buckley Job Title: President Board Level: Senior Management Since: 2006 Age: 45
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
Mr. Buckley has been the President of the company since 2006. Prior to this, he was the President and the Chief Executive Officer of Ben Sherman Group, Ltd.s North America division. From 1996 to 2001, he served as the Vice President at Diesel Jeans.
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Products:
Apparel: Jeans T-Shirts & Tanks Shirts Jackets Fleece Skirts & Shorts Shorts Tops Bottom Accessories: Fragrance Leather Goods Hats Belts Shoes Scarves Gloves Bags Brands:
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
2007
Corporate Changes/Expansions
2007
New Products/Services
2005
Corporate Changes/Expansions
2004
Corporate Changes/Expansions
2003
Acquisitions/Mergers/Takeovers
2001
Incorporation/Establishment
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
expansion of our sportswear and licensed-product offerings, which comprised 24% of our retail store sales in 2008. We expect that this segment's net sales will increase by 60% to 65% in 2009 primarily from the 27 stores opened in 2008 and the 25 stores that we expect to open in 2009. International net sales increased 26.2% to $40.0 million due primarily to increased sales to distributors for Europe and North America. Offsetting this increase was a planned sales decrease in Japan as a result of our transition from a third party distributor to a company-owned subsidiary. Beginning with the spring 2008 season, we started the pre-season selling activities sooner than in the prior year, which we believe contributed to the growth in our international sales along with the favorable customer reaction to our newer collections. Operating Income U.S. Wholesale operating income increased $11.0 million from 2007 to 2008 but decreased as a percentage of U.S. Wholesale net sales from 32.7% in 2007 to 31.0% in 2008. The Consumer Direct operating income increased $15.9 million from 2007 to 2008 but decreased as a percentage of Consumer Direct net sales from 40.6% to 36.9%. This decrease as a percentage of net sales was due primarily to increased operating expenses associated with the expansion of the Consumer Direct segment. International operating income increased to $16.8 million from $14.7 million in 2007 but decreased as a percentage of International net sales from 46.4% in 2007 to 41.9% in 2008 due to costs to establish and ramp up our first international subsidiary, in Japan.
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Park Meadows 8405 Park Meadows Center Drive #1125 Lone Tree Colorado (CO) 80124 United States Tel: +1 303 7906067 Lenox Square 3393 Peachtree Road #4015E Atlanta Georgia (GA) 30326 United States Tel: +1 404 8466355 2202 N Halsted Chicago Illinois (IL) 60614 United States Tel: +1 773 2819590
Somerset Collection 2800 W. Big Beaver Road Space #Q-11 Troy Michigan (MI) 48084 United States Tel: +1 248 4586031
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
GlobalData
True Religion Apparel, Inc., Subsidiaries Guru Denim, Inc. 2263 E Vernon Ave Los Angeles California (CA) 90058 1631 United States Tel: +1 323 266 3072
GlobalData
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
In March 2009, the company signed a new licensing agreement with Revolution Eyewear Inc., a worldwide eyewear company, to produce and distribute True Religion branded eyewear. Further, in April 2009, the company signed a new licensing agreement with United Legwear Company, LLC to manufacture and distribute True Religion branded legwear. As of June 30, 2009, the company entered into a total of 78 lease agreements, which consists of 73 retail stores in the US, 3 retail stores in Japan and the offices in Vernon, California and Japan. For the first six months ended June 30, 2009, the company generated revenues of USD 135.7 million, an increase of 15.4% as compared to USD 117.6 million the previous year. The operating income and net income too increased by 15.9% and 14.7%, generating USD 31 million and USD 18.6 million, respectively. The strong growth was principally attributed to the continued expansions of consumer direct segment. Further, the gross profit, as a percentage of net sales, increased 420 basis points to 61.5% in the first six months of 2009 from 57.3% the previous year. This was primarily due to the increase in the higher margin consumer direct segments net sales.
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
the company is prone to these challenges and any underperformance of the counterfeit products will have a major affect on the companys revenues.
NOTE: * Sector average represents top companies within the specified sector The above strategic analysis is based on in-house research and reflects the publishers opinion only
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Leverage Ratios Net Debt to Equity Efficiency Ratios Asset Turnover Fixed Asset Turnover Inventory Turnover Current Asset Turnover Capital Employed Turnover Working Capital Turnover Revenue per Employee Net Income per Employee Capex to Sales Absolute Absolute Absolute Absolute Absolute Absolute USD USD % 3.18 5.19 6.77 6.50 1.76 28.05 7.04 1.90 2.19 2.39 1.53 14.96 3.58 1.93 1.82 2.38 1.62 9.64 4.38 2.05 1.90 2.39 1.35 7.84 3.35 1.65 1.57 1.87 1.23 7.51 3.21 1.50 1.46 1.72 218,710 26,155 4.85
GlobalData
-69.96
-30.12
-40.24
-53.34
-61.76
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Performance Chart
True Religion Apparel, Inc., Performance Chart (2006 - 2010)
GlobalData
Financial Performance
The company reported revenues of (U.S. Dollars) USD 363.71 million during the fiscal year ended December 2010, an increase of 16.95% over 2009. The operating profit of the company was USD 69.92 million during the fiscal year 2010, a decrease of 9.89% from 2009. The net profit of the company was USD 43.50 million during the fiscal year 2010, a decrease of 8.10% from 2009.
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
PBIT Margin (Profit Before Interest & % Tax) PBT Margin (Profit Before Tax) Operating Costs (% of Sales) Administration Costs (% of Sales) Interest Costs (% of Sales) Current Ratio Quick Ratio Net Debt to Equity Interest Coverage Ratio % % % % Absolute Absolute % %
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Return on Equity
Return on Assets
Current Ratio
GlobalData
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Vendor
09-Mar-2009
Completed
Partnership
06-Nov-2006
Announced
Partnership
Note: Deals include recent 10 deals in the past 24 months. Above data is extracted from GlobalDatas Deals and Alliances Profile.
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Mar 16, 2010: True Religion inaugurates new retail store in Charlotte, North Carolina
US-based apparel retailer True Religion Apparel, Inc., has opened a new retail outlet at SouthPark Mall in Charlotte, North Carolina. The new retail store, which covers a retail space of 1,899 square feet, is located at 4400 Sharon Road. This new store offers entire True Religion collection for men, women and kids, including its signature jean styles, its expanding denim, sportswear and handbag collection, and a full range of licensed merchandise. Located in Charlotte's southeast quadrant, SouthPark Mall houses several brands including Neiman Marcus, Tiffany and Burberry. SouthPark Mall has 1.5 million square feet of retail space. This new store is True Religions first apparel store in the region. True Religion Apparel, Inc. is a design-based jeans and jean-related sportswear brand. The company designs, manufactures and markets True Religion Apparel products, including its True Religion Brand Jeans.
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Mar 01, 2010: True Religion launches new store in Walnut Creek, California
True Religion Apparel Incorporation, an American clothing line has announced recently the opening of a new branded retail store at Broadway Plaza in Walnut Creek, California. Located at 1275 Broadway Plaza, the 1,476 square-foot branded retail store will offer shoppers the entire True Religion collection for men, women and kids, including its signature jean styles, its expanding denim, sportswear and handbag collection, and a full range of licensed merchandise. Broadway Plaza is a 700,000 square foot upscale, open-air shopping destination for the entire East Bay. With over 85 specialty retailers including Nordstrom, Coach, Juicy Couture, Kate Spade, Betsey Johnson and Lacoste, Broadway Plaza maintains the strongest collection of upscale retail brands in the East Bay. True Religion Apparel, Inc. is a jeans and jean-related sportswear brand. The company designs, manufactures and markets True Religion Apparel products, including its premium True Religion Brand Jeans. Its expanding product line may be found in contemporary department stores and boutiques in 50 countries around the world, including the United States, Canada, Germany, United Kingdom, Japan, Korea, France, Spain, Sweden, Greece, Italy, Mexico, Australia, South Africa and China.
Feb 24, 2010: True Religion Apparel reports rise in total net sales
True Religion Apparel, Inc., an apparel retailer based in US has reported 27.2% increase in fourth quarter total net sales, in its fourth quarter and full year financial results ended December 31, 2009. The company reported that, its total net sales were $92.8 million, an increase of 27.2% as compared to $73.0 million in the fourth quarter of 2008. The companys fourth quarter same-store sales for 36 stores increased 22.3%. The retailer operated 70 branded stores as of December 31, 2009, compared to 42 as of December 31, 2008. Gross profit of the company was $58.7 million, or 63.2% of net sales, compared to $43.3 million, or 59.3% of net sales, in the fourth quarter of 2008. Selling, general and administrative expense of the company increased 48.6% to $34.8 million as compared to $23.4 million in 2008 period. The company also reported that, its operating income increased 20.4% to $23.9 million as compared to $19.8 million in the prior year period. Operating income of the company was 25.7% of sales in fourth quarter 2009 versus 27.2% in fourth quarter 2008. Net income of the company increased 15.2% to $14.6 million, or $0.59 per diluted share based on weighted average shares outstanding of 24.8 million, as compared to $12.7 million, or $0.53 per diluted share based on weighted average shares outstanding of 24.1 million in the 2008 fourth quarter. Total net sales of the company were $311.0 million, an increase of 15.2% as compared to $270.0 million in the 2009 year ended December 31, 2008. Net sales for the companys consumer direct segment increased 71.3% to $129.0 million as compared to $75.3 million in 2008. Gross profit increased 24.6% to $195.6 million, or 62.9% of net sales, compared to $157.0 million, or 58.1% of net sales, in 2008. Operating income of the company increased 12.7% to $77.6 million, or 25.0% of net sales, from $68.9 million, or 25.5% of net sales, in 2008. Selling, general and administrative expense increased 33.9% to $118.0 million from $88.1 million in 2008, and as a percentage of net sales, increased 530 basis points to 37.9% from 32.6% in 2008. Net income of the company increased 6.7% to $47.3 million, or $1.92 per diluted share based on weighted average shares outstanding of 24.7 million, from $44.4 million, or $1.83 per diluted share based on weighted average shares outstanding of 24.3 million, in 2008. True Religion Apparel, Inc. designs, manufactures and markets True Religion Apparel products, including its True Religion Brand Jeans. The retail chains product line includes a wide variety of products in denim and sportswear. These products are found in
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
contemporary department stores and boutiques in 50 countries around the world, including the US, Canada, Germany, UK, Japan, Korea, France, Spain, Sweden, Greece, Italy, Mexico, Australia, South Africa and China
Feb 23, 2010: True Religion opens its new retail outlet in Portland, Oregon
True Religion Apparel, Inc. an apparel retailer from California has opened its new retail store at Washington Square in Portland, Oregon.
The new retail outlet which occupies 1,485 square feet area of retail space is located at 9585 S.W. Washington Square road. This new store will offer the entire True Religion collection for men, women and kids, including its signature jean styles, its expanding denim, sportswear and handbag collection, and a full range of licensed merchandise. The new outlet is located at Washington Square, which is spread over 1.5 million square feet of retail space in Washington County. Washington houses over 170 shops and restaurants including Nordstrom, Coach, Apple, Sephora and MetroPark. Located within close proximity to Nike's world headquarters, Washington Square is easily accessible to many of Portland's educated and affluent communities. Over 400,000 residents with average annual household incomes exceeding $80,000 are located within five miles of Washington Square. True Religion Apparel, Inc. designs, manufactures and markets True Religion Apparel products, including its True Religion Brand Jeans. The retailers expanding product line includes fit in denim, sportswear, and licensed products, found in contemporary department stores and boutiques in 50 countries around the world, including the US, Canada, Germany, UK, Japan, Korea, France, Spain, Sweden, Greece, Italy, Mexico, Australia, South Africa and China.
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Section 5 Appendix
The data and analysis within this report is driven by GlobalData. GlobalData gives you key information to drive sales, investment and deal making activity in your business. Our coverage includes 165,000 + reports on 150,000+ companies (including 100,000+ private) across 200+ countries and 29 industries. The key industries include Alternative Energy, Oil & Gas, Clean Technology, Technology and Telecommunication, Pharmaceutical and Healthcare, Power, Financial Services, Chemical and Metal & Mining.
Methodology
GlobalData company reports are based on a core set of research techniques which ensure the best possible level of quality and accuracy of data. The key sources used include: Company Websites Company Annual Reports SEC Filings Press Releases Proprietary Databases Currency Codes Currency Code USD
GlobalData
Ratio Definitions
Capital Market Ratios Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock. Price/Earnings Ratio (P/E) Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. Price per share is as of previous business close, and EPS is from latest annual report. Calculation: Price per Share / Earnings per Share Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a company's capital structure. It compares the value of a business, free of debt, to earnings before interest. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income + Interest + Tax + Depreciation + Amortization) Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into account the amount of debt a company has, which needs to be paid back at some point. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating
Enterprise Value/Sales
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Income Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Calculation: Annual Dividend per Share / Price per Share
Dividend Yield
GlobalData
Equity Ratios These ratios are based on per share value. Earnings per Share (EPS) Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability. Calculation: Net Income / Weighted Average Shares Dividend per Share Dividend is the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders. Calculation: Earnings per share / Dividend per share Book Value per Share Book Value per Share measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares Cash Value per Share
GlobalData
Dividend Cover
Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is determined by dividing cash & equivalents by the total shares outstanding. Calculation: Cash & equivalents / Outstanding Shares
Profitability Ratios Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well. Gross Margin Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed and direct-variable unit costs. Calculation: {(Revenue-Cost of revenue) / Revenue}*100 Operating Margin Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency. Calculation: (Operating Income / Revenues) *100 Net Profit Margin Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows how much of each dollar earned by the company is translated into profits. Calculation: (Net Profit / Revenues) *100 Profit Markup Profit Markup measures the company's gross profitability, as compared to the cost of revenue. Calculation: Gross Income / Cost of Revenue PBIT Margin (Profit Before Interest & Tax) Profit Before Interest & Tax Margin shows the profitability of the company before interest expense & taxation. Calculation: {(Net Profit+Interest+Tax) / Revenue} *100
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Profit Before Tax Margin measures the pre-tax income over revenues. Calculation: {Income Before Tax / Revenues} *100 Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. Calculation: (Net Income / Shareholders Equity)*100
Return on Equity
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings. Calculation: EBIT / (Total Assets Current Liabilities)*100
Return on Assets
Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio measures how efficient management is at using its assets to generate earnings. Calculation: (Net Income / Total Assets)*100
Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant & equipment). Calculation: (Net Income / Fixed Assets) *100
Return on Working Capital measures the company's profitability to its working capital. Calculation: (Net Income / Working Capital) *100
Cost Ratios Cost ratios help to understand the costs the company is incurring as a percentage of sales. Operating costs (% of Sales) Operating costs as percentage of total revenues measures the operating costs that a company incurs compared to the revenues. Calculation: (Operating Expenses / Revenues) *100 Administration costs (% of Sales) Administration costs as percentage of total revenue measures the selling, general and administrative expenses that a company incurs compared to the revenues. Calculation: (Administrative Expenses / Revenues) *100 Interest costs (% of Sales)
GlobalData
Interest costs as percentage of total revenues measures the interest expense that a company incurs compared to the revenues. Calculation: (Interest Expenses / Revenues) *100
Liquidity Ratios Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern. Current Ratio Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. Calculation: Current Assets / Current Liabilities Quick Ratio Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Calculation: (Current Assets - Inventories) / Current Liabilities
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Cash Ratio
Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only looks at the most liquid short-term assets of the company, which are those that can be most easily used to pay off current obligations. It also ignores inventory and receivables, as there are no assurances that these two accounts can be converted to cash in a timely matter to meet current liabilities. Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
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Leverage Ratios Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses. Debt to Equity Ratio Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also depends on the industry in which the company operates. For example, capital-intensive industries tend to have a higher debt-equity ratio. Calculation: Total Liabilities / Shareholders Equity Debt to Capital Ratio Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its operations, along with some insight into its financial strength. The higher the debt-to-capital ratio, the more debt the company has compared to its equity. This indicates to investors whether a company is more prone to using debt financing or equity financing. A company with high debt-tocapital ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk. Calculation: {Total Debt / (Total assets - Current Liabilities)} Interest Coverage Ratio
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Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt, calculated as earnings before interest & tax by interest expense. Calculation: EBIT / Interest Expense
Efficiency Ratios Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of resources. Fixed Asset Turnover Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other fixed assets. Calculation: Net Sales / Fixed Assets Asset Turnover Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to the company. A higher asset turnover ratio shows that the company has been more effective in using its assets to generate revenues. Calculation: Net Sales / Total Assets Current Asset Turnover Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales. Calculation: Net Sales / Current Assets Inventory Turnover Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying. Calculation: Cost of Goods Sold / Inventory Working Capital Turnover Working Capital Turnover is a measurement to compare the depletion of working capital to the generation of sales. This provides some useful information as to how effectively a company is using its working capital to generate sales.
True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com
Calculation: Net Sales / Working Capital Capital Employed Turnover Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales revenue to the company. Calculation: Net Sales / Shareholders Equity Capex to sales Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets' effectiveness when compared to the sales generated. Calculation: (Capital Expenditure / Sales) *100 Net income per Employee Net income per Employee looks at a company's net income in relation to the number of employees they have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity. Calculation: Net Income / No. of Employees Revenue per Employee Revenue per Employee measures the average revenue generated per employee of a company. This ratio is most useful when compared against other companies in the same industry. Generally, a company seeks the highest revenue per employee. Calculation: Revenue / No. of Employees Efficiency Ratio Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its shareholders. Calculation: Non-interest expense / Total Interest Income
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Notes Financial information of the company is taken from the most recently published annual reports or SEC filings The financial and operational data reported for the company is as per the industry defined standards Revenue converted to USD at average annual conversion rate as of fiscal year end
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True Religion Apparel, Inc. (TRLG) - Financial and Strategic SWOT Analysis Review Source : www.globalcompanyintelligence.com