Catorade enjoys a AAA bond rating of 20 points. The company value is $865,300 with stock selling per share at $156.00. In year 18, Catorade posted $337,562 in sales revenue, representing after-tax earnings of S49,129.00. Catorade investors currently enjoy an 8.80% return on equity.
Catorade was originally based in the United States. Though the market leader during this time in the U.S.; Catorade recognized increased competition as a threat to market share and profits. Adopting a proactive management strategy, the company conducted research that showed costs could be cut by lowering quality on private-label brands without significantly affecting consumer values. The company also began aggressive expansion and investment in Asia, spending $3 million on initial efforts. Expansion into other European areas soon followed. This eliminated a variety of costs associated stemming from overseas tariffs.
By cutting costs on materials and by cutting tariff costs, Catorade managed to become the low-cost industry leader while still providing consumers with value and offering them a wider selection of footwear than anyone else in the industry. Costs were further cut by reducing production levels in Texas, where labor and other costs were historically high. This move was combined with spending an additional $2 million on further expansion in Asia. In year 14 the company investe