Final Presentation Dicks Sporting Goods

Current Financial Position: Stable and Consistent

Proved through horizontal analysis, ratio analysis, common size analysis, and pro forma statements

Horizontal Analysis

Strengths revealed: consistent gains in major categories including sales and gross profit

Sales- 17% total increase since 2014

Gross profit- 12% total increase since 2014

Weaknesses revealed: no significant growth in Net Income corresponding with the increase in sales

Recommended course of action: examine costs accounts to find areas that are larger than necessary and cut down these costs to increase net income moving forward

Ratio Analysis

Strengths Revealed: Stability and consistency within the company while growth is occurring, outperforming competitors in a several areas

Current Ratio 1.52, 1.61, 1.62

Debt to Total Assets Ratio 0.50 0.46 0.45

Gross Profit Margin 30.02% 30.62% 31.29%

Weaknesses Revealed: Slightly smaller than competitors in a few key areas

Common Size Analysis

Strengths Revealed: Internal consistency across years of growth, is stable with competitors

Weaknesses Revealed: High expenses due to growth

Pro Forma Analysis

Strengths Revealed: Consistency moving forward, continual growth in a growing industry

Weaknesses Revealed: Costs continue to grow

Conclusion: The company is in fantastic financial position and is continuing to expand in a growing market


Created with images by JeepersMedia - "Dick's Sporting Goods" • JeepersMedia - "Dick's Sporting Goods" • joel_barr - "At Work - Sigma 18-35mm f/1.8" • JHil Media Design - "Ball" • FromSandToGlass - "Sad ball" • nike159 - "tennis ball tennis court" • pavelhoque - "golf ball golfing sport"

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