Standing straight up, with your arms at your sides, the sleeves of the shirt are not quite reaching the large wrist bone.
How the sleeve length should fit
With your arms hanging relaxed at your sides and the cuffs of the shirt unbuttoned, the sleeves should come down to the center of the back of the hand (or the first knuckle of your thumb). This may seem too long to some folks, but the key is to also make sure that the cuffs are sized appropriately to your wrists. This way, when the cuffs are buttoned they will prevent the cuff from sliding too far over your hand. With the cuffs buttoned, they should just cover the large wrist bone, but not the palm. This extra length will allow you to bend and raise your arms without the cuff sliding far up your forearm.