Finishline Annual Report Analysis

1736 WordsMar 13, 20137 Pages
FiniFinish Line Section 1 – Introduction Finish Line is a premium retailer of athletic shoes, apparel and accessories, operating 637 Finish Line stores averaging approximately 5,400 square feet in 47 states, often mall-based. They also operates an e-commerce site, www.finishline.com, as well as mobile commerce via m.finishline.com. Finish Line stores generally carry a large selection of men, women and kids’ performance and athletic casual shoes, as well as an assortment of apparel and accessories Income Sheet | 3 March 2012 | 26 February 2011 | 27 February 2010 | Sales | 1,369,259 | 1,229,002 | - | Net Income | 84,804 | 68,834 | - | Total Asset | 711,496 | 664,845 | 610,268 | Stockholders’ Equity | 529,537 | 490,245 |…show more content…
In 2011, their cash flows from investing were -$19,008, and -$3,633 in 2010. Most of their investing is due to additions to property and equipment. Cash Flows from Financing Cash flows from financing activities have become more negative in the past three years. This is due to the increased purchases of treasury stock and increased dividends paid to shareholders. In 2012, treasury stock purchases totaled $60,368 while dividends paid to shareholders equaled $10,512. These numbers are relatively normal and are not a cause for concern. Free Cash Flows Cash flows from operating activities – capital expenditures = free cash flows $94,740 – $29,131 = $65,609 This tells how much money is left over after a company pays for its capital expenditures from operations. Some analysts assess the quality of a company’s earnings by noting the how consistently the amount of cash flows from operating activities is greater than net income.[3] http://www.investopedia.com/university/ratios/cash-flow-indicator/ratio1.asp#axzz2964X151G [1] $108,574/$1,229,002 = 0.08834 [2] $157,458/$1,172,415 = 0.13430 [3] http://www.accountingcoach.com/online-accounting-course/03Xpg04.html Section 5: Critique – Austin Finish Line considers fiscal 2012 to have been a great year. Three years prior they put in place in a strategic

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