TOWSON INVESTMENT CLUB Stock Analysis Investing in Dick’s Sporting Goods (DKS) Kristal Ricks November 7, 2012 Summary I highly recommend investing in Dick’s Sporting Goods stock now at the current price of $51.32. It is a great long-term investment because the stock price continues to increase every year. Dick’s Sporting Goods (DKS) has shown consistent growth over recent fiscal years, as net sales, gross profit, revenue and net income have increased significantly. Dick’s is a sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment. With over 500 stores, Dick’s has continued to expand and add stores at a steady rate of about 15% a year (CNN, 2012).
b. The company expects the total sales revenue for year 9 to be $5,247,450 with sales of 3510 bikes. With this projection, the company has increased its revenue from the previous year of $5,083,000. This is a total of $164,450. With this increase in sales, the company has improved its sales revenue by 3.2% from year 8.
The net sales also increased from year 14 to year 17 ending at $7,115,112. This showed to be very profitable with trend percentages at 103.7%. A2) There are certain risks a banker might be concerned with. Over the years the advertising expenses have increased from $243,000 to $255,600. The increase in advertising can be helping with increase in net sales which has also increased from 46,520,500 in year 12 to $6,858,600 in year 14.
First, reviewing net sales for years six and seven, we appreciate a change of $1, 495,000 which translates to a thirty three percent increase. Since the change supports an increase, we know Competition Bikes experienced an increase in sales and operational performance. Next, costs of goods sold demonstrate a positive increase of 31.8% totaling $1,048,000. This value is indicative of the accumulated total of all costs associated in creating a product or service, which has been sold.
Introduction to Executive Tools for Decision Making TUI Financial Accounting ACC201 Introduction to Executive Tools for Decision Making APPLE Inc. The total amount of cash available for Apple to pay their current debts is $123.55 billion dollars in favor of assets. I derived this from Apple’s Assets $207 billion and subtracted their liabilities, which was $83.45 billion. I believe that Apple is in good shape due to the total assets the company has received. $207 – 83.45 = 123.55 billion Apple is increasing its investment in operations every year.
The key factor that influenced Costco’s financial performance during 2012 is customer loyalty. The number of Costco members increased by 11%, even after membership fees increased. Although there were tough economic conditions in 2012, Costco managed to grow the business by 17 locations in 2012. Increasing sales is also critical to Costco’s success. The number of warehouses that exceeded $200 million in annual sales volume rose from 93 locations in 2011 to 134 locations in 2012: and eight of those warehouses exceeded $300 million in annual sales.
The Second Strength: The current year 2014 gross profit is $27,390 which constitutes 34.75% of sales. The steady gross profit percentage is also a strength and further supports the net sales growth. The gross profit itself increased from $25,842 to $27,390 for an increase of 6% over the two periods. This is consistent with the 5.4% net sales growth. Operating expenses further support the strength with a 1.87% decrease from fiscal 2013 to fiscal
Since its incorporation the company has expanded tremendous to offer its services in more 40 countries. Ever since the company has been growing financially as the subscriber base continues to increase. Even though the company had recorded in its first few years, in 2003 it started being profitable recording a profit of $ 6.5 million which has since increased to $ 112 million during fiscal year 2013. It has also expanded in its services from the initial 925 works and it is now offering over 150,000 Blu-ray and DVD titles with an additional streaming content choices
With low prices and superior products Lowe’s will keep expanding internationally and take more market share from the other competitors in the retail home improvement industry. I. CURRENT SITUATION Lowe’s is currently continuing with their growth strategy and opening 42 new stores to reflect a total square footage growth of around 2 percent. With fiscal year 2012 sales of $50.5 billion and net earnings of $2.0 billion, Lowe’s has recorded profits every year since becoming public. Lowe’s generated operating cash flows of $3.8 billion in 2012.
This success can be attributed to several factors as decentralized store control, high margins, low cost structure and good customer experience leading to high store productivity. Considered one of the best performing retail companies, and even one of the top-performing public companies, by 2003 BBBY had experienced a fortyfold increase in stock price since its 1992 initial public offering. Cash, cash equivalents, and short-term investment securities at the end of fiscal year 2003 had grown more than 40 percent relative to the preceding year to $867 million. It was estimated that BBBY’s cash balance was $400 million higher than its ongoing requirements for growth and operations. These factors allowed the company to be widely admired by equity analysts but it also raised important questions concerning the deterioration of return on equity.