Finishline Annual Report Analysis

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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| 442,150|
Average Total Asset| 688,170.5| 637,556.5| -|
Average SE| 509,891| 466,197.5| -|

| 3 March 2012| 26 February 2011|
Profit Margin| 6.19%| 5.60%|
Asset Turnover| 1.99| 1.93|
Financial Leverage| 1.35| 1.37|
ROA| 12.32%| 10.81%|
ROE| 16.63%| 14.81%|

Balance Sheet
| 3 March 2012| 26 February 2011|
Current Assets| 552,748| 509,684|
Current Liabilities| 138,683| 126,420|
Total Assets| 711,496| 664,845|
Total Liabilities| 181,959| 174,600|
Cash| 307,494| 299,323|
Marketable Securities| -| -|
Accounts Receivables| 9,041| 10,552|
EBIT| | |
Interest Expense| | |

| 3 March 2012| 26 February 2011|
Current Ratio:| 3.9857| 4.0317|
Quick Ratio:| 2.2824| 2.4512|
Debt Ratio:| 25.57%| 26.26%|
Times Interest Earned:| | |
Debt-to-equity Ratio| 34.34%| 35.61%|
| | |

Section 2: Income Statement
The identified trends in Finish Line’s income statement positively reflect on its successful fiscal year. With the provided information of the covered period, it can be determined how Finish Line’s profitability and productivity exemplified the company’s strong performance and improvements since last fiscal year. At a quick glance, the differences in the current and previous periods already show the overall improvements. Through a thorough analysis, the findings have been consistent on Finish Line’s strong performance. Finish Line’s revenue saw an 11.41% increase while managing to increase their cost of revenue by only 9.09%. In addition, their gross profit had $66,200,000 more than the previous fiscal year, showing a 15.99% increase. Lastly, the net income displayed a significant jump since the previous period with a growth of 23.16%, a total of $15,940,000 more than last fiscal year’s net income. Finish line was able to increase their profit margin 5.60% to 6.19%. One of the factors behind this improvement can be contributed to reducing their cost of revenue by 1.28%. The asset turnover has also risen from 1.93 to 1.99, displaying an increase of efficiency of asset management. Finish Line’s financial leverage also has seen slight improvements as it went down from 1.37 to 1.35. This reveals that Finish Line has reduced the percentage of debt relative to equity and has lowered the company’s risk with debt at a very small scale. The return on assets increased by 1.51% putting it at 12.32% and expanding Finish Line’s profitability. The return on equity showed improvements as well by jumping from 14.81% last February to 16.63% this March. Furthermore, Finish Line’s return on equity is 2.73% higher than the industry’s average return on equity. This indicates a strong growth for Finish Line as well as showing favor to the investors on how well their money is being spent.

Section 3: Balance Sheet

Total Asset dropped 46,651 - 6.56% decrease
Total Liab dropped 7,359 - 4.04% decrease
Cash dropped 8,171- 2.66% decrease
Accounts Receivable rose 1,511 - 16.71% increase

Current Ratio rose .05 [3.99 to 4.03] - 1.15% increase
implies positive working capital
high current ratio indicates Finish Line’s high market liquidity capable of paying of short term liabilities.
It was...
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