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Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Dick's Sporting Goods for the year ended February 1,
Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Dick's Sporting Goods for the year ended February 1, 2020. Locate the "Consolidated Statements of Income" (income statement) and "Consolidated Balance Sheets." You may also find the annual report at the company's website. Required: 1. Calculate the following risk ratios. In parentheses are the corresponding ratios for the industry. Determine for each ratio whether Dick's Sporting Goods would generally be considered to have lower or higher risk relative to the industry under normal conditions. a. Receivables turnover ratio. (Industry = 85.9) b. Inventory turnover ratio. (Industry = 7.48) c. Current ratio. (Industry = 1.45) d. Acid-test ratio. (Industry = 0.6) e. Debt to equity ratio. (Industry = 68.0%) 2. Calculate the following profitability ratios. In parentheses are the corresponding ratios for the industry. Determine for each ratio whether Dick's Sporting Goods would generally be considered to have lower or higher profitability relative to the industry under normal conditions. a. Gross profit ratio. (Industry = 30.3%) b. Return on assets. (Industry = 6.7%) c. Profit margin. (Industry = 3.8%) d. Asset turnover. (Industry = 1.9 times) e. Return on equity. (Industry = 20.1%) Complete this question by entering your answers in the tabs below.
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