Dick's Sporting Goods Financial Analysis

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Dick’s Sporting Goods is a very profitable company that has been around on the market more than 60 years. They are a company that is well above what is always projected and expected. The following they have from customers is one of the highest in the sporting goods industry. The fortune 500 company is so profitable due to the many locations, the plethora of inventory, and the helpful and courteous staff they hire. When looking at the income statement of the company I notice right off the bat that the company has improved its net sales year after year since 2009. Every year the company improves its net sales by just under half a billion dollars. That also means that gross profit has gone up each year due to the costs of goods sold rising minimally over those years. The company is in very good strong shape right now. They started off the first quarter of the fiscal year shaky but have been picked up with a strong fourth quarter to end the year (McGrath, 2015). When looking at dick’s current status one of the main ratios to look at is the return on assets to see how much the company would get back for what they have put in. The return on assets of Dick’s Sporting Goods is 11%. Another ratio to look at is the return on equity to see what the investors are getting back for the money and faith they have in the company. The return on equity …show more content…

With the increases in profit steadily going up they should continue to rise in that same pattern. Other things the company is doing will help them as well. They have been coming up with ways to get new customers through he door and they have started offering a credit card for the company. The company is also seeing improved sales in the youth and women’s sections which is helping to improve profitability. Also, in a time of technology Dick’s is showing that it can run with the big dogs posting a 28% growth in the 2014 fiscal year (Davis, 2015). Another high point for the future

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