# Essay about Golf Galaxy Assesment

3504 WordsFeb 9, 201415 Pages
Retail Analysis To begin, I’d like to first introduce Golf Galaxy. Golf Galaxy opened its first store in 1997 making it a rather new however rapidly growing company, and now has over 45 stores spanning 19 states with an average size of 17,000 square feet. Golf Galaxy has quickly differentiated itself from its competitors by becoming the first interactive golf store providing superstore design, selection, and pricing along with pro shop knowledge and service, which is usually only found at your local country club. Golf Galaxy’s idea for competitive advantage is to take the benefit s of a superstore and combine them with the benefits you find at a country club. Golf Galaxy stands as one of the few stores in the United States with a…show more content…
Income Statement (As of Feb. 26, 2005) Gross Margin = Net Sales - COGS = \$133,080,000 - \$93,964,000 = \$39,116,000 Gross Margin % = Gross Margin / Net Sales = \$39,116,000 / \$133,080,000 = 29.4% Expense % = Operating Expenses / Net Sales = \$34,849,000 / \$133,080,000 = 30.8% Net Profit = Gross Profit - All Expenses = \$39,116,000 - Shown in statement (too much to write down) = \$7,538,000 Net Profit Margin = Net Profit / Net Sales = \$7,538,000 / \$133,080,000 = 6.7% Balance Sheet (As of Feb. 26, 2005) Inventory Turnover = Net Sales / Average Inventory = \$133,080,000 / \$29,627,666 = 4.49 Asset Turnover = Net Sales / Total Assets = \$133,080,000 / \$65,137,000 = 1.74 Return on Assets = Net Profit / Total Assets = \$7,538,000 / \$65,137,000 = 11.57% Based on the data collected, as well as the analysis and comparison of other companies which were shown in class, it has been determined that Golf Galaxy lies in both fields. That is, they are focused partially on both the profit path as well as the turnover path. Golf Galaxy has a fiscal net profit margin of 6.7% which is fairly high in comparison to other companies, yet they also have a relatively high inventory turnover at 4.49/year, which shows that Golf Galaxy tends to turnover inventory at a fairly swift