Analyzing A Company For Its Investment Potential In Its Annual Report Wrs Athletic S 2264714
Analyzing a company for its investment potential
In its annual report, WRS Athletic Supply, Inc. includes the following five-year financial summary.
WRS ATHLETIC SUPPLY, INC.
Five-Year Financial Summary (Partial; adapted)
(Dollar amounts In thousands except per share data)
2018
2017
2016
2015
2014
2013
Net Sales
$244,524
$217,799
$191,329
$165,013
$137,634
Net Sales Increase
12%
14%
16%
20%
17%
Domestic Comparative Store Sales Increase
5%
6%
5%
8%
9%
Other Income—Net
2,001
1,873
1,787
1,615
1,391
Cost of Goods Sold
191,838
171,562
150,255
129,664
108,725
Operating, Selling, and General and Administrative Expenses
41,236
36,356
31,679
27,408
22,516
Interest:
Interest Expense
(1,063)
(1,357)
(1,383)
(1,045)
(803)
Interest Income
138
171
188
204
189
Income Tax Expense
4,487
3,897
3,692
3,338
2,740
Net Income
8,039
6,671
6,295
5,377
4,430
Per Share of Common Stock:
Net Income
1.81
1.49
1.41
1.21
0.99
Dividends
0.30
0.28
0.24
0.20
0.16
Financial Position
Current Assets, Excluding Merchandise Inventory
$ 30,483
$ 27,878
$ 26,555
$ 24,356
$ 21,132
Merchandise Inventory at LIFO Cost
24,891
22,614
21,442
19,793
17,076
$16,497
Property, Plant, and Equipment, Net
51,904
45,750
40,934
35,969
25,973
Total Assets
94,685
83,527
78,130
70,349
49,996
Current Liabilities
32,617
27,282
28,949
25,803
16,762
Long-term Debt
22,731
21,143
17,838
18,712
12,122
Shareholders’ Equity
39,337
35,102
31,343
25,834
21,112
Financial Ratios
Acid-test Ratio
0.9
1.0
0.9
0.9
1.3
Rate of Return on Total Assets
10.2%
9.9%
10.3%
10.7%
9.6%
Rate of Return on Shareholders’ Equity
21.6%
20.1%
22.0%
22.9%
22.4%