Acushnet's Balance Sheet 2019 2020. % Change
Cash and Short term investments: $34.18M. $151.45M. 343%
Total Accounts Receivable: $215.43M $201.52M. -6.5%
Inventories: $398.37M. $357.68M. -10.2%
Total Current Assets: $742.82M. $799.81M. 7.6%
Accounts Payable: $102.34M. $112.87M. 10.3%
Total Current Liabilities: $359.12M. $357.68M. 0.4%
Total Shareholder's Equity. $919.25M. $984.08M. 7.1%
Acushnet's Income Statement
Revenue: $1.68B. $1.61B. -4.2%
Cost of Goods Sold: $825.07M. $799.01M. -3.2%
Gross Income. $856.29M. $813.16M. -5%
Interest Expense: $19.47M. $12.8M. -34.3%
Net Income: $121.07M. $96.01M. -20.7%
Acushnet's Statement of Cash Flows
Depreciation & Amortization: $43M. $45.43M. 5.7%
Net Operating Cash Flow: $134.28M. $264.43M. 96.9%
Capital Expenditures: -$32.96M. -$24.68M. 25%
Cash Dividends Paid. -$43.49M. -$46.07M. -5.9%

Looking at a horizontal analysis of a company's different financial statements can show trends or patterns for a company and their financial outlook in the current market. Acushnet mostly competes in the golf club sales industry with Titleist as its main brand and equipment line. As mentioned in previous posts before, the COVID pandemic sparked a rise in golf and gained a lot of new players to the game, and with that includes more equipment sales. This would explain the large jump in cash on the balance sheet as the largest percentage change by far, and gives Acushnet to use this cash wisely in investments for more return in the future or take care of any outstanding liabilities. The interest expense and net operating cash flow also showed a large percentage gain and shows that they may not currently be in the most ideal position fiscally, but they have a chance to improve in the near future especially in regards to current assets versus current liabilities.

Answer rating: 100% (QA)

The cash and short term investments of the company increased drastically whereas the Revenue of the ... View the full answer