Access the 2010 annual report for Dick's Sporting Goods by clicking on the About Us, Investor Relations,

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Access the 2010 annual report for Dick's Sporting Goods by clicking on the About Us, Investor Relations, and Annual Reports links at www.dickssportinggoods.com.
Required
a. Examine the company's income statement and balance sheet and calculate all profitability, liquidity, and solvency ratios for 2010. To calculate the price to earnings ratio, use the high stock price for the fiscal quarter ended January 29, 2011.
b. Based on your answers above, write a paragraph explaining your opinion of the financial health of Dick's Sporting Goods.
c. Calculate a DuPont analysis and explain what would happen to the company's return on equity if it was able to improve its operating efficiency by one penny. Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

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