Analyze the companys financial summary for the fiscal years

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Reference no: EM13590371

(Dollar amounts in thousands except per share data) 2018 2017 2016 2015 2014 2013

Net Sales 2018:$244,524 2017:$217,799 2016:$191,329 2015:$165,013 2014:$137,634

Net Sales Increase 2018:12% 2017:14% 2016:16% 2015:20% 2014:17%

Domestic Comparative Store Sales Increase 2018:5% 2017:6% 2016:5% 2015:8% 2014:9%

Other Income-Net 2018:2,001 2017:1,873 2016:1,787 2015:1,615 2014:1,391

Cost of Goods Sold 2018:191,838 2017:171,562 2016:150,255 2015:129,664 2014:108,725

Operating, Selling, and General and Administrative Expenses 2018:41,236 2017:36,356 2016:31,679 2015:27,408 2014:22,516

Interest:

  • Interest Expense 2018:(1,063) 2017:(1,357) 2016:(1,383) 2015:(1,045) 2014:(803)
  • Interest Income 2018:138 2017:171 2016:188 2015:204 2014:189
  • Income Tax Expense 2018:4,487 2017:3,897 2016:3,692 2015:3,338 2014:2,740
  • Net Income 2018:8,039 2017:6,671 2016:6,295 2015:5,377 2014:4,430

Per Share of Common Stock:

  • Net Income 2018:1.81 2017:1.49 2016:1.41 2015:1.21 2014:0.99
  • Dividends 2018:0.30 2017:0.28 2016:0.24 2015:0.20 2014:0.16

Financial Position

  • Current Assets, Excluding Merchandise Inventory 2018:$ 30,483 2017:$ 27,878 2016:$ 26,555 2015:$ 24,356 2014:$ 21,132
  • Merchandise Inventory at LIFO Cost 2018:24,891 2017:22,614 2016:21,442 2015:19,793 2014:17,076 2013:$16,497
  • Property, Plant, and Equipment, Net 2018:51,904 2017:45,750 2016:40,934 2015:35,969 2014:25,973
  • Total Assets 2018:94,685 2017:83,527 2016:78,130 2015:70,349 2014:49,996
  • Current Liabilities 2018:32,617 2017:27,282 2016:28,949 2015:25,803 2014:16,762
  • Long-term Debt 2018:22,731 2017:21,143 2016:17,838 2015:18,712 2014:12,122
  • Shareholders' Equity 2018:39,337 2017:35,102 2016:31,343 2015:25,834 2014:21,112

Financial Ratios

  • Acid-test Ratio 2018:0.9 2017:1.0 2016:0.9 2015:0.9 2014:1.3
  • Rate of Return on Total Assets 2018:10.2% 2017:9.9% 2016:10.3% 2015:10.7% 2014:9.6%
  • Rate of Return on Shareholders' Equity 2018:21.6% 2017:20.1% 2016:22.0% 2015:22.9% 2014:22.4%

Requirements

1. Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of WRS. Include the following sections in your analysis, and fully explain your final decision.

1. Trend analysis for net sales and net income (use 2014 as the base year).

2. Profitability analysis.

3. Evaluation of the ability to sell merchandise inventory (WRS uses the LIFO method).

4. Evaluation of the ability to pay debts.

5. Evaluation of dividends.

Reference no: EM13590371

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