31-Jan-98
$82,490
15,840
206,128
6,709
311,167
94,529
36,106
6,550
137,185
448,352
100,322
24,829
90,667
51,162
9,292
1,363
902
6,639
132,692
216,203
13,162
1,633
230,998
3
249,590
76,113
325,706
689,396
3,222
155,706
16,646
7,212
704
24,562
3
218,616
49,465
269,084
448,352
Just-For-Feet Page 21
STATEMENT OF EARNINGS
Net sales
Cost of sales
Gross profit
Franchise fees, royalties, etc
Operating expenses
Store operating
Store opening costs
Amortization of intangibles
General and administrative
Total operating
Operating income
Interest expense
Interest income
Earnings before income taxes
Provision of income tax
Net earnings
Shares outstanding
Diluted
Fiscal 1998
774,863
452,330
322,533
1,299
Fiscal 1997
478,638
279,816
198,822
1,101
232,505
13,669
2,072
24,341
272,587
51,245
-8,059
143
43,329
16,681
26,648
30,737
139,659
6,728
1,200
18,040
165,627
34,296
-1,446
1,370
34,220
12,817
21,403
29,615
31,852
30,410
Just-For-Feet Page 22
RATIOS
Current ratio
Quick ratio
Net working capital, NWC
Net liquid balance, NLB
Working capital requirements, WCR
WCR/Sales
Cash flow from operations
Cash conversion period
Days inventory held, DIH
Days sales outstanding, DSO
Days payables outstanding, DPO
Current liquidity index
Total assets / total sales, A/S
After-tax profit ratio, m
Dividend payout ratio, d
Debt to equity ratio, D/E
Sustainable growth rate, g*
Actual sales growth rate, g
1998
3.39
0.37
316,798
5,773
311,025
0.40
-82,070
250.63
322.69
8.89
80.95
0.0045
0.8897
0.0344
0
0.7092
7.07%
61.89%
1997
2.00
0.67
155,461
-11,399
166,860
0.35 (similar
-26,384 to W.T.
214.22 Grant
268.88 CCP in
12.08 the early
66.74 70's)
0.9367
0.0447
0
0.0913
5.50%
a.)
b.)
c.)
d.)
e.)
Just-For-Feet Page 23
f.)
growth, the company's debt-to-equity ratio increased in 1998 to 1.11 from a level
of .67 in 1997.
Conclusions
While earnings increased and the company's current ratio increased from 1997 to
1998, the company's operations generated an increasing deficit cash flow level;
and the company's current liquidity index shows a lack of any liquid resources
relative to the current level of debt due. The company is in a significant liquidity
crisis.