business finance profitability ratios

Foot Locker will be the company

  1. Name of Company and Ticker Symbol: Company name, ticker symbol
  2. 10-K Report: Paste the direct URL to the company’s most recent 10-K Report
  3. Company Website: Paste the URL to the company’s website
  4. Industry name and NAICS Code: Provide the name and NAICS code associated with the Industry Average data.
  5. Profitability Ratios: Follow the formatting in the example below to present the data. See this sample eStatement Studies document for help in finding the industry average data needed for this assignment.
    20XX 20XX 20XX** Industry Average***
    Gross Profit Margin (Gross Profit / Sales)
    Operating Profit Margin (Operating Profit / Sales)
    Pre-Tax Net Profit Mg (Pre-Tax Profit** / Sales)
    Pre-Tax Return on Equity (Pre-Tax Profit** / Shareholders Equity)
    Pre-Tax Return on Assets (Pre-Tax Profit** / Total Assets)

    *most recent year
    **use Pre-Tax Profit to make the comparison to the industry average more accurate.
    ***There will be a single industry average for the gross, operating, and pre-tax net profit margins. List all 3 industry average figures for the pre-tax return on equity and the pre-tax return on assets.

  6. Evaluation: Interpret each of the ratios. Review the Financial Ratios Guidelines document for direction. Do you see any red flags? How profitable is the company in relation to sales? How profitable is it in relation to assets? How profitable is it in relation to equity?