Analysis Of Cabela's Sales

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Cabela’s experienced a large decrease of 30% in accounts receivable in 2009 before a 48% increase in 2010. Recently in 2014 they have seen a 45% increase in their accounts receivables. The accounts receivable turnover ratio is used to calculate how efficiently a firm uses its assets. As Cabela’s has grown, so has its accounts receivable turnover ratio. From 2005-2014 Cabela’s AR turnover ratio has increased 154.89%, largely due to their expansion over the 10 year period. Cabela’s Days Sales Outstanding ratio has seen a large decrease over the 10 year period. From 2005-2014 their DSO ratio has decreased 60%, meaning that Cabela’s now collects revenue from its sales at a much faster rate. Cabela’s AR change to overall sales change ratio saw…show more content…
Their % change in A/R/Overall % change is sales ratio shows a sharp decrease starting in 2005 till 2009 where it reached a low of -19.25%. This could be attributable to the recession in which the company could have been experiencing a lower amount of accounts receivable to sales during that time frame. Dick’s currently has an AR turnover ratio of 102.7x. This has increased over the period by 66.18%, which indicates that they have become better collecting their accounts receivable over the period. In negative correlation, their DSO (Day Sales Outstanding) ratio has decreased over the period by 40.68% down to 3.5 days. This is an excellent DSO, meaning that it only takes them 4 days on average to collect their accounts receivable.

Big 5 Sporting
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This means that it is taking them a lot longer to collect their debts on that credit. This lower number can mean that Big 5’s collection process has become worse or has sold to customers with financial difficulties. The Overall Days Outstanding ratio has increased 48.39% over the 10 year period. It averaged a 2.6x DSO (Day Sales Outstanding) in 2005 and averaged a 4.3x DSO in 2014. This means that it is taking them almost 2 extra days on average to collect their accounts
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