Black & Decker Financial Statement Analysis

Perspective

This analysis will review one of America’s largest and oldest organizations.   Black & Decker Corporation (BDK) has had numerous acquisitions and mergers that have allowed it to become the organization as we know it today.   Given past performance and growth excellence, it appears almost a certainty that BDK should be in an individual’s portfolio.

With the information age upon us, we have increasingly more ways in which to analyze a company and its financial statements.   We will take a closer look at Black & Decker’s financials over the last 3 years and calculate if the future or present statistics are as profitable as BDK and history would have you believe.  

In our analysis, we will look to make a recommendation to a potential investor who is interested in purchasing this stock and adding it to his/her portfolio.

Included in the data for our analysis will look at the balance sheets and income statements over the 2003-2005 timeframe. We will also consider financial criteria that include ratios, historical stock prices and future projections.  

Is this investment sound?   Is the organization sound?   These are some of the questions that should be thought through when reading this analysis and managing our perspective.

It is important to consider that with all the information, for all the research, past performance is no guarantee for future performance.

History of Organization

Two young entrepreneurs Duncan Black, and Alonzo Decker founded a small machine shop in Baltimore, Maryland.   This shop was created in the early 1900’s and has withstood the test of time.   Today this company known as Black and Decker Ltd (BDK) is still going strong.   It has had a long and eventful history, but on all accounts it is a larger entity.   A global manufacturer of numerous product lines lead market share in their respective industries.   It is now the world’s largest producer of power tools and accessories.

BDK was not always the global leader in...