Friday, October 4, 2019
Analysis Essay Example | Topics and Well Written Essays - 250 words - 33
Analysis - Essay Example According to the data, Dicks Sporting Goods Inc. the company recorded a revenue of 1173.794 Million dollars based on the one year sales. The figure is too high and therefore, the company failed in the analysis test. The twelve month Debt/Capitalization ratio for the company is quite high from what the methodology requires of the company to go public. The leading companies that investors look for do not need money in order to be a going concern. The company has really borrowed a lot of money which is not a good sign for the investors. Dicks Sporting Goods Inc. has 1.84X as debt/EBITDA ratio. This is relatively higher figure. It therefore, means that the company will not be in a position service their current debt in a right manner and can lead to lower credit rating. According to the analysis, the company has a weak relative strength. Companies that have a relative strength of more than 90% is always considered to be very attractive. Therefore, the relative strength of 64% is not good enough for the investors to buy its
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