1. Cabela's
by: Rayne Everage

2. Introduction of Company
Founded in 1961 by current Chairman Dick Cabela & his younger brother Jim.
The Cabela family owns about 37% of the company’s common stock since it went public in 2004.
Operates 35 stores in 20+ states as well as a few locations in Canada.
Cabela's sells footwear, clothing, and gear for fishing, hunting, camping, and other outdoor activities.

3. About the industry: Outdoor Recreation
6.1 million American jobs
$646 billion in outdoor recreation spending each year
$39.9 billion in federal tax revenue
$39.7 billion in state/local tax revenue

5. Top Competitors Gross Revenue Bass Pro Shops Academy Sports
Dick’s Sporting Goods
Gander Mountain
Orvis Company
Sportsman’s Guide
Gross Revenue
$3, M
$2, M
$5, M
$ M
$ M
$ M

6. Current Ratio Current ratio = total current assets
total current liabilities
2011: x = /
x = 2.54
2010: x = /
x = 1.97
2009: x = /
x = 1.86

7. Analysis of Current Ratio
This gives an indication of the company’s ability to manage short term liabilities with short term assets.
For each year, the ratio’s were above 1, which means that the company has more assets than liabilities for that given year.
Increase over the past three years indicated company’s growth

8. Debt to Equity Ratio
Debt to equity ratio = total liabilities share holder’s equity 2011: x = / x = : x = / x = : x = / x = 1.53

9. Analysis of Debt to Equity
Determines the proportion of equity and debt the company is using to finance its assets.
In 2010, Cabela’s made a large leap in the debt to equity ratio, indicating they have been financing their growth with debt.
Between 2010 and 2011, it decreased slightly.

10. Accounts Receivable Turnover Ratio
Accounts receivable = net credit sales turnover ratio avg. accounts rec. 2011: x = / x = : x = / x = : x = / x = 0.26

11. Analysis of Account Receivable Turnover Ratio
Measure company’s ability to collect on credit sales.
High value of accounts receivable usually means the company collects its credit sales quite often.

12. Return on Equity ROE= net income from total operations
common stock equity
2011: x = /
x = 0.12
2010: x = /
x = 0.11
2009: x = /
x = 0.05

13. Analysis of Return on Equity
Refers to the amount of profit the company earned in comparison with shareholders equity.
The ROE has increased slightly each year, which means that it is more likely capable to generate cash internally.

14. Net Profit Margin Percentage
Net profit margin = net income
sales revenue
2011: x = /
x = 0.05
2010: x = /
x = 0.02
2009: x = /

15. Analysis of Net Profit Margin Percentage
Indicates how much net income a company makes with total sales achieved.
The Net profit margin percentage has increased slightly which implies that the company is becoming more efficient in converting sales into actual profit

16. Return on Assets ROA= net income from operations total assets
2011: x = /
x = 0.03
2010: x = /
x = 0.02
2009: x = /
x = 0.019

17. Analysis of Return on Assets
Tells you what earnings were made from investing assets.
The Return on Assets has slightly increased in the past three years, which indicates that they are turning assets into profit slightly better than each previous year.

18. Plans for the Future:
Accelerate store openings, including five new locations in 2012.
All the new stores conform to the retailer's adaptable next-generation format, which ranges in size from about 80,000 to 125,000 square feet and allows the company to expedite new store opening in prime locations.

19. Thank you!