In examining the differences among the size segments (Small, Medium, Large) for the Industry: Sporting Goods Stores (45111), several key observations can be made based on their income statements:

Gross Profit: Smaller companies have a higher Gross Profit margin at 67.5%, compared to Medium (60.9%) and Large (45.1%). This suggests smaller firms manage their Cost of Goods Sold more efficiently.

Cost Structure: Large companies show a significantly higher Cost of Goods Sold at 54.9%, driven by higher Material Cost (52.2%), which indicates a possible focus on scaling production or dealing with higher input prices. In contrast, Small companies have a Cost of Goods Sold of 32.5%.

Operating Expenses: The Operating Expenses for Small companies account for 61.6%, while Large companies maintain a leaner structure at 39.8%. This efficiency in Larger firms is attributed to lower Other Operating Expenses (28.4%).

Profitability: EBITDA margins are relatively similar across all sizes, with Small at 5.9%, Medium at 5.5%, and Large at 5.3%. However, Small companies achieve higher Net Income at 1.9%, while Large firms report 1.2%, reflecting differences in overall cost management and tax impact.

Trends and Insights:

• Scale vs. Efficiency: Large firms prioritize scale, which impacts profit margins due to higher production costs.
• Flexibility of Small Firms: Smaller firms can rapidly adapt and maintain higher profitability through controlled expenses and efficient material usage.
• Consistent Operating Costs: Salaries and Wages, Rent, and Advertising & Marketing remain constant percentage-wise across all sizes, indicating fixed strategic investments regardless of company size.

In the Sporting Goods Stores industry, analyzing the balance sheet across different business sizes—Small, Medium, and Large—reveals distinct financial structures and priorities.

Current Assets

All sizes maintain a high percentage of Total Current Assets, approximately 80%. However, there's a slight variation in Inventory, with Large businesses holding the most at 62.6%, indicating a greater investment in stock. Small businesses have marginally higher Cash reserves at 3.8%, suggesting a preference for liquidity.

Non-Current Assets

The proportion of Total NonCurrent Assets remains fairly consistent across sizes, around 19%. Notably, Large businesses possess a small amount of Intangible Assets at 0.1%, which might indicate investments in brand or intellectual property.

Liabilities

There's a clear trend where Larger businesses carry higher Total Liabilities, at 66.6%, compared to 53.2% for Small businesses. This is reflected in greater Accounts Payable and Other Current Liabilities, particularly in Large firms, which may suggest leveraging for expansion.

Net Worth

As company size increases, Net Worth decreases from 46.8% in Small businesses to 33.4% in Large businesses, highlighting a heavier reliance on external financing in larger firms.

General Trends

Medium and Large companies show similar patterns in Total Current Liabilities at about 61%, whereas Small companies maintain a lower percentage at 53.2%, emphasizing a conservative financial approach. Across all sizes, Fixed Assets investment is minimal, indicating a potential focus on agile and less capital-intensive operations.

In analyzing the different size segments—Small, Medium, and Large—within the Sporting Goods Stores industry, several key financial ratio trends become apparent.

Liquidity: The Quick Ratio decreases from Small (0.19) to Large (0.12), indicating that larger firms hold less liquid assets relative to their current liabilities. The Current Ratio also follows a similar pattern, with Small at 3.00 and Large at 2.09, suggesting tighter liquidity in larger companies.

Liabilities: The proportion of Current Liabilities To Net Worth increases significantly from Small (57.6%) to Large (114.4%). Similarly, Total Liabilities To Net Worth is much higher in larger firms (188.2%) compared to smaller ones (113.7%), indicating a heavier reliance on debt.

Asset Management: Inventory Turnover improves from Small (1.78) to Large (2.74), suggesting that larger firms manage inventory more efficiently. The Assets To Sales ratio is relatively stable, with a slight increase seen in Large firms (29.6%).

Profitability: Return On Assets and Return On Investment tend to decline as firm size increases, with Return On Assets at 5.9% for Small and 3.5% for Large. This indicates diminishing returns with scale. Interestingly, Profit Per Employee is highest in Large firms ($1,220) despite their lower Sales Per Employee ($69,852), implying a potential focus on maximizing employee efficiency.

Operational Efficiency: Sales To Working Capital is highest in Large firms (8.40), indicating more efficient use of working capital. Additionally, Interest Coverage is strongest in Large firms (4.49), suggesting they are better positioned to meet interest obligations.

Overall, as companies grow from Small to Large, they tend to leverage more debt, improve operational efficiencies, and face tighter liquidity, all while managing more efficient inventory systems.