Dick’s Sporting Goods
Manami Maehama
Professor Martin
Horizontal & Vertical Analysis
Balance Sheet
Cash & Short Term Investments
Cash and Short Term investments is the sum of two balance sheet line items: cash
and equivalents and short term investments in marketable securities.
3 ways to improve:
1. Lease, Don’t Buy.
2. Offer Discounts on Loans
3. Conduct Customer Credit Checks
Assets Horizontal
2016 2017 2018 2019 2020 2021
119M (39%) 165M (-39%) 101M (13%) 114M (-39%) 70M (-6.5%) 69M
Total Accounts Receivable
Total Accounts receivable is the balance of money due to a firm for goods or
services delivered or used but not yet paid for by customers.
3 ways to improve :
1. Move fast on past-due receivables.
2. Consider offering an early payment discount
3. Consider offering a payment plan
ASSET Horizontal
2016 2017 2018 2019 2020 2021
67M (16%) 78M (-17%) 65M (-32%) 44M (34%) 59M (0.25%) 59M
Inventories
Inventory is the term for the goods available for sale and raw materials used to
produce goods available for sale.
3 ways to improve :
1. Avoid dead stock.
2. Save on storage costs
3. Regular auditing
ASSET Horizontal
2016 2017 2018 2019 2020 2021
2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B
Total Current Assets
Total current assets represent all the assets of a company that are expected to be conveniently
sold, consumed, utilized or exhausted through the standard business operations, which can lead to
their conversion to a cash value over the next one year period.
3 ways to improve :
1. Pay off Current Liabilities.
2. Sell-off Unproductive Assets.
3. Improve Current Asset by Rising Shareholders Funds
ASSET Horizontal
2016 2017 2018 2019 2020 2021
2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B
Net Property, Plant & Equipment
Net Property, Plant, and Equipment is the value of all buildings, land, furniture, and
other physical capital that a business has purchased to run its business.
3 ways to improve :
1. Ins and outs of depreciation
2. Use an accelerated method that takes most most of the depreciation up front
3. Subtract depreciation over time
ASSET Horizontal
2016 2017 2018 2019 2020 2021
1B (100%) 2B (0%) 2B (0%) 2B (100%) 4B (50%) 5B
Intangible Assets
An intangible asset is an asset that is not physical in nature.
3 ways to improve:
1. Identify Your Intangible Asset
2. Standardize Systems and Processes
3. Develop Your Intangibles
ASSET Horizontal
2016 2017 2018 2019 2020 2021
310M (24%) 385M (0.5%) 387M (-2%) 380M (-10%) 340M (3%) 340M
Net Goodwill
Goodwill is an intangible asset that is associated with the purchase of one
company by another.
3 ways to improve:
1. Cash-Flow Statement Basics
2. Investing Cash Flow
3. Financing Cash Flow
ASSET Horizontal
2016 2017 2018 2019 2020 2021
200M (23%) 245M (2%) 250M (0%) 250M (-2%) 245M (6%) 245M
Other Assets
Other assets are a grouping of accounts that are listed as a se.
1. Dick’s Sporting Goods
Manami Maehama
Professor Martin
Horizontal & Vertical Analysis
Balance Sheet
Cash & Short Term Investments
Cash and Short Term investments is the sum of two balance
sheet line items: cash
and equivalents and short term investments in marketable
securities.
3 ways to improve:
1. Lease, Don’t Buy.
2. Offer Discounts on Loans
3. Conduct Customer Credit Checks
Assets Horizontal
2016 2017 2018 2019 2020 2021
119M (39%) 165M (-39%) 101M (13%) 114M (-39%) 70M (-
6.5%) 69M
Total Accounts Receivable
Total Accounts receivable is the balance of money due to a firm
2. for goods or
services delivered or used but not yet paid for by customers.
3 ways to improve :
1. Move fast on past-due receivables.
2. Consider offering an early payment discount
3. Consider offering a payment plan
ASSET Horizontal
2016 2017 2018 2019 2020 2021
67M (16%) 78M (-17%) 65M (-32%) 44M (34%) 59M (0.25%)
59M
Inventories
Inventory is the term for the goods available for sale and raw
materials used to
produce goods available for sale.
3 ways to improve :
1. Avoid dead stock.
2. Save on storage costs
3. Regular auditing
ASSET Horizontal
2016 2017 2018 2019 2020 2021
2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B
3. Total Current Assets
Total current assets represent all the assets of a company that
are expected to be conveniently
sold, consumed, utilized or exhausted through the standard
business operations, which can lead to
their conversion to a cash value over the next one year period.
3 ways to improve :
1. Pay off Current Liabilities.
2. Sell-off Unproductive Assets.
3. Improve Current Asset by Rising Shareholders Funds
ASSET Horizontal
2016 2017 2018 2019 2020 2021
2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B
Net Property, Plant & Equipment
Net Property, Plant, and Equipment is the value of all buildings,
land, furniture, and
other physical capital that a business has purchased to run its
business.
3 ways to improve :
1. Ins and outs of depreciation
2. Use an accelerated method that takes most most of the
depreciation up front
3. Subtract depreciation over time
ASSET Horizontal
4. 2016 2017 2018 2019 2020 2021
1B (100%) 2B (0%) 2B (0%) 2B (100%) 4B (50%) 5B
Intangible Assets
An intangible asset is an asset that is not physical in nature.
3 ways to improve:
1. Identify Your Intangible Asset
2. Standardize Systems and Processes
3. Develop Your Intangibles
ASSET Horizontal
2016 2017 2018 2019 2020 2021
310M (24%) 385M (0.5%) 387M (-2%) 380M (-10%) 340M
(3%) 340M
Net Goodwill
Goodwill is an intangible asset that is associated with the
purchase of one
company by another.
3 ways to improve:
1. Cash-Flow Statement Basics
2. Investing Cash Flow
3. Financing Cash Flow
5. ASSET Horizontal
2016 2017 2018 2019 2020 2021
200M (23%) 245M (2%) 250M (0%) 250M (-2%) 245M (6%)
245M
Other Assets
Other assets are a grouping of accounts that are listed as a
separate line item in
the assets section of the balance sheet.
3 ways to improve:
1. Find new sources of income
2. Get out of debt
3. Spend less
ASSET Horizontal
2016 2017 2018 2019 2020 2021
83M (30%) 108M (11%) 120M (-12%) 106M (26%) 134M
(14%) 152M
Tangible Other Assets
Tangible assets include both fixed assets, such as machinery,
buildings and land, and
current assets, such as inventory.
3 ways to improve:
6. 1. A high net tangible assets value can serve as a cushion
against uncertainty that can
take place in the market and help to support a company’s stock
price.
2. Determining this value helps to find out if the market share
price of a company is
overvalued or undervalued.
3. As tangible current assets can easily be converted into cash,
they provide liquidity to
the business and, thus, reduce risk
ASSET Horizontal
2016 2017 2018 2019 2020 2021
83M (30%) 108M (11%) 120M (-12%) 106M (26%) 134M
(14%) 152M
Total Assets
Total assets refers to the total amount of assets owned by a
person or entity.
3 ways to improve:
1. Reduce asset base
2. Improve Productivity And Lower Costs
3. Increase Sales Revenue
ASSET Horizontal
2016 2017 2018 2019 2020 2021
11. 134M (2%) 3%
Total Assets
2016 2017 2018 2019 2020
4B 4B 4B 4B 7B
Tangible Other
Assets
ST Debt & Current Portion LT Debt
The current portion of long-term debt is the amount of principal
that will be due within one year of
the date of the balance sheet. This amount is reported on the
balance sheet as one of the
company's current liabilities.
3 ways to improve:
1. A company can keep its long-term debt from ever being
classified as a current liability by
periodically rolling forward the debt into instruments with
longer maturity dates and balloon
payments.
2. Pay debts back on time
3. Stop creating more debt
Liabilities Horizontal
2016 2017 2018 2019 2020 2021
589,000
(10%)
12. 646,000
(67%)
5M (0%) 5M (83%) 423M (40%) 592M
Accounts Payable
Money owed by a company to its creditors.
3 ways to improve:
1. Go paperless when possible
2. Look for discounts
3. Standardize your accounts payable workflow process
Liabilities Horizontal
2016 2017 2018 2019 2020 2021
678M (12%) 756M (12%) 843M (6%) 890M (12%) 1B (11%)
110M
Income Tax Payable
Income tax payable is a type of account in the current liabilities
section of a
company's balance sheet. It is compiled of taxes due to the
government within one
year.
3 ways to improve:
1. Open an interest-bearing bank account
13. 2. Skip some of the credits for which you are eligible
3. Accelerate advanced payments in the current year instead of
delaying
payment until the next tax year.
Liabilities Horizontal
2016 2017 2018 2019 2020 2021
68M (26%) 86M (-60%) 34M (15%) 39M (-74%) 10M (-93%)
700,000
Other Current Liabilities
Other Current Liabilities are categories of short-term debt that
are lumped together
on the balance sheet.
3 ways to improve: to reduce
1. Sell unnecessary assets
2. Factor invoices
3. Use investments or cash to pay off loans
Liabilities Horizontal
2016 2017 2018 2019 2020 2021
445M (25%) 555M (-2%) 543M (5%) 570M (13%) 641M (10%)
705M
Miscellaneous Current Liabilities
14. Miscellaneous Current Liabilities is an account for current
liabilities that do not fall
into any of the categories already defined.
3 ways to improve: to reduce
1. Reduce costs
2. Increase income
3. Restructure liabilities
Liabilities Horizontal
2016 2017 2018 2019 2020 2021
350M (19%) 418M
(-0.2%)
417M (-3%) 405M (58%) 641M (18%) 756M
Total Current Liabilities
Total Current Liabilities are the claims to the company's assets
that are due within
one year or the cycle of operations.
3 ways to improve:
1. Restructure assets
2. Raise more capital
3. Exit the business
Liabilities Horizontal
2016 2017 2018 2019 2020 2021
15. 1B (0%) 1B (0%) 1B (100%) 2B (0%) 2B (25%) 2.5B
Long Term Debt
Long Term Debt is any amount of outstanding debt a company
holds that has a
maturity of 12 months or longer.
3 ways to improve: to reduce
1. Increase profitable sales
2. Sell assets and lease them back
3. Bring in an investor
Liabilities Horizontal
2016 2017 2018 2019 2020 2021
5M(0%) 5M (1100%) 60M (-8%) 55M
(5355%)
3B (1612%) 51B
Deferred Taxes-Debit
Corporate bookkeepers debit an asset account to increase its
value and credit the
account to reduce its worth.
3 ways to improve:
1. Try to stop losses from operations
2. Pay the taxes
3. Use the straight line method
16. Liabilities Horizontal
2016 2017 2018 2019 2020 2021
6M(667%) 46M (-67%) 14M (-7%) 13M (8%) 14M (150%) 35M
Other Liabilities
Other Liabilities are all miscellaneous obligations that a
company lumps together
on financial statements.
3 ways to improve:
1. Sell unnecessary assets
2. Convert necessary assets into liabilities
3. Factor invoices
Liabilities Horizontal
2016 2017 2018 2019 2020 2021
175M (11%) 195M (9%) 213M (-5%) 203M(-34%) 134M (-5%)
127M
Total Liabilities
Total liabilities are the aggregate debt and financial obligations
owed by a
business to individuals and organizations at any specific period
of time.
3 ways to improve:
