This study was conducted to analyze demerits of the sire evaluation system using annual earnings and to examine relationship between annual earnings and finish time in home-produced thoroughbred racehorses. The average number of progenies and number of starts per sire were 34 heads and 221 times, respectively. On the other hand, the number of progenies with the average age of 2 years and the number of starts were 9 heads and 25 times, respectively. The earnings of the horses with the age of 2 years accounted for 8.3% of annual earnings. The simple correlation coefficient between the number of progenies and the number of starts in annual earnings were 0.922 and 0.934, respectively. The correlation coefficient between the number of progenies and the number of starts was very high (0.985). The number of progenies and starts of sires for the first year of test career were very low (6 heads and 17 times), and there was very close relationship between number of progenies and annual earnings by the year of test career. The number of progenies was over 40 heads during the first 4 years of test career, and as the number of progenies increased the average earning index increased. The average earning index of sires with less than 30 progenies was lower than 1.00. When the number of progenies was less than 10, the average earning index was in the range of 0.06~0.13, indicating that the number of progenies affects much for determining the ranking of sires. The correlation coefficient between breeding value for finish time and annual earnings per start was very high (-0.524~-0.633) compared with other traits.