To: Randall Strutz, MBA 733 instructor
From: Jordan Joseph
Subject: Comprehensive Problem- Company Analysis
Date: November 3, 2016
Company Analysis
WZB Athletic Supply, Inc. has released its annual report. This report includes a five-year financial summary for the fiscal years 2016-2020. Financial summaries are used to help investors throughout the decision making process of investing in a company’s common stock. Some of the strategies involved in this decision are evaluating the growth of the company’s income, net sales, and inventory turnover, along with dividend payout. The combination of these strategies and the annual report should give an investor all he or she needs to know before making the decision to invest.
Trend Analysis for …show more content…
Many ways of evaluating a company’s profits are available other than looking at the bank account. Profitability analysis includes profit margin ratios, rate of return on total assets, rate of return on common stockholders’ equity, and earnings per share of common stock (Auerbach, 2016). In the case of WZB Athletic Supply, Inc., the profit margin ratio, return on equity, and return on assets are increasing during the selected five-year period. Also, the earnings per share is increasing over the time period so this makes the stock an attractive …show more content…
Investors are especially interested in the dividend payout because they want to know if the company they are invested in is paying out an equitable portion of net income to its investors (Dividend Payout Ratio, 2016). After evaluating WZB’s dividends per share, it is evident that the amount is increasing over the 5 year period, which makes the stock more attractive.
Conclusion
After examining the annual report from WZB Athletic Supply, Inc., it is recommended to purchase stock. This conclusion was made after evaluating the net sales and net income with the trend analysis, the inventory turnover and earnings per share and determining these trends have increased or improved. Also, the remaining measures have been sturdy and in many cases improved. The increasing dividends and steady growth make WZB Athletic Supply’s stock an attractive
From: Jordan Joseph
Subject: Comprehensive Problem- Company Analysis
Date: November 3, 2016
Company Analysis
WZB Athletic Supply, Inc. has released its annual report. This report includes a five-year financial summary for the fiscal years 2016-2020. Financial summaries are used to help investors throughout the decision making process of investing in a company’s common stock. Some of the strategies involved in this decision are evaluating the growth of the company’s income, net sales, and inventory turnover, along with dividend payout. The combination of these strategies and the annual report should give an investor all he or she needs to know before making the decision to invest.
Trend Analysis for …show more content…
Many ways of evaluating a company’s profits are available other than looking at the bank account. Profitability analysis includes profit margin ratios, rate of return on total assets, rate of return on common stockholders’ equity, and earnings per share of common stock (Auerbach, 2016). In the case of WZB Athletic Supply, Inc., the profit margin ratio, return on equity, and return on assets are increasing during the selected five-year period. Also, the earnings per share is increasing over the time period so this makes the stock an attractive …show more content…
Investors are especially interested in the dividend payout because they want to know if the company they are invested in is paying out an equitable portion of net income to its investors (Dividend Payout Ratio, 2016). After evaluating WZB’s dividends per share, it is evident that the amount is increasing over the 5 year period, which makes the stock more attractive.
Conclusion
After examining the annual report from WZB Athletic Supply, Inc., it is recommended to purchase stock. This conclusion was made after evaluating the net sales and net income with the trend analysis, the inventory turnover and earnings per share and determining these trends have increased or improved. Also, the remaining measures have been sturdy and in many cases improved. The increasing dividends and steady growth make WZB Athletic Supply’s stock an attractive