Financial Statements of a Company

784 Words Jan 31st, 2018 3 Pages
The main statements are the income statement, the balance sheet and the statement of cash flows (Harper, 2012). The company's performance can be evaluated in a number of different ways. The most important are that the company can be evaluated against its own past performance, and it can also be evaluated against other firms in the same industry.

The income statement for Dick's Sporting Goods indicates that the company has increased its revenues steadily over the past three years, from $4.4 billion to $5.2 billion. Over this period, the company has been able to maintain control over its cost inputs, so gross profit increased over the same period, from $1.2 billion to nearly $1.6 billion. As a result, the net profit also increased steadily over the same time period, from $135 million to $263 million. These figures suggest that Dick's has seen steadily-improving performance over the past three years. This performance should have resulted in improvements to the company's balance sheet.

Indeed, this is the case. There are a few things that should be taken into consideration with the balance sheet. The first is the amount of debt that the company has. If the company is profitable, it should either maintain a steady amount of debt or see that debt level decrease. Dick's has seen the percentage of its capital structure in liabilities decrease over the course of…
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