In: Finance
Case 3.3 Logitech International S.A
Question: from the Logitech international S.A form 10-k analyze the profitability of Logitech
Company Overview
Logitech is a world leader in products that connect people to
the digital experiences they care about. Spanning multiple
computing, communication and entertainment platforms, we develop
and market innovative hardware and software products that enable or
enhance digital navigation, music and video entertainment, gaming,
social networking, and audio and video communication over the
Internet.
Logitech was founded in Switzerland in 1981, and Logitech
International S.A. has been the parent holding company of Logitech
since 1988. Logitech International S.A. is a Swiss holding company
with its registered office in Apples, Switzerland, which conducts
its business through subsidiaries in Americas (including North and
South America), EMEA (Europe, Middle East, Africa) and Asia Pacific
(including, among other countries, China, Taiwan, Japan and
Australia).
Logitech has two operating segments:
* Peripherals
Peripherals segment, which includes retail and OEM channels, encompasses the design, manufacturing and marketing of peripherals for PCs (personal computers), tablets and other digital platforms.
* Video conferencing
Video conferencing segment encompasses the design, manufacturing and marketing of video conferencing products, infrastructure and services for the enterprise, public sector, and other business markets
Using the Consolidated Statements of Operations and the excerpts from the Logitech International S.A. Form 10-K, analyze the profitability of Logitech. Analysis should include the following calculations for all three years:
(a) Common-size income statements.
(b) Effective tax rates.
(c) Growth rates of sales and total operating costs.
Written analysis and interpretation should include explanations
for why trends
have occurred.
The following excerpts are from the Logitech International S.A. Form 10-K.
Please find the attachment for Logitech International S.A Consolidated Statements of Operations.