Sportsman Warehouse Holding Inc. January 31, 2015 Annual Report
With reference to Item 6 of the Company’s selected financial Data, the Sportsman Warehouse Holding registered $270,723 in Total Assets; a remarkable increase from $224,229 in 2014 and $143,166,563 in the year 2013. In the same vein, the company also registered a plausible decrease in its total liabilities coming down to $302,055 in 2015 from 345,325 in 2014. With regard to stockholders’ equity, in 2015 the company recorded $13,784 in net income down from the previous year’s $21,750 which as well came down from $28,074 in 2013.
From the prevailing data, it is certainly the fact that the Company is expanding in terms of its total assets while cutting down on its liabilities over the years. To this extent, the company manifests asset efficiency since it is able to generate income from its assets while incurring less liability. However, such changes prove to be negative from an investor’s perspective. This is attributed to the fact that the company is recording consistent decrease in the net income in terms of stockholder’s equity over the three years. In this regard, a stockholder finds it less feasible to maintain stock in the company due to the deteriorating net income in terms of the stockholder’s equity.
Delegate your assignment to our experts and they will do the rest.
On the other hand, taking to consideration Sportsman Warehouse Holding’s income statements, the company recorded $660.003 in total revenue, translating to a net income of $13,784 in the year 2015. Previously in 2014, the company had registered $643,163 in total revenue which translated to $21,750 in net income while in 2013, the company recorded $526,942 in total revenue that translated to $28,074 net income.
Net income is the measure of a company’s profitability over a period of time. Sportsman’s Warehouse Holding’s profitability is consistently decreasing over time. This is attributed to the company’s increasing selling, general and administrative expenses over the years, which accounts for the company’s decreasing net income despite the constantly increasing total revenue and gross profit over the years. On a stockholder’s perspective, these changes would be detrimental for investment. Despite the fact that the company seems to be undergoing internal changes that result to accelerating selling, general and administrative expenses.
References
Sportsman’s Warehouse Holdings, Inc. (2015). Sportsman’s Warehouse Holdings, Inc. Annual Report. Washington, D.C. Retrieved from http://investors.sportsmanswarehouse.com/secfiling.cfm?filingid=1564590-15-2345&cik=1132105
