LLS6e_CP3_3 - CP3-3 Comparing Companies within an Industry...

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CP3-3 Comparing Companies within an Industry Required: 1. What does each company call its income statement? Explain what "Consolidated" means. 2. Which company had higher net income for the fiscal year? 3. 4. 5. This workbook is organized as follows: Sheet Name Contents CP3-3 (this worksheet) CP3-3 Problem Requirements and Workbook Layout Industry Ratio Report American Eagle Outfitters, Inc. Consolidated Balance Sheets American Eagle Outfitters, Inc. Consolidated Statements of Operations American Eagle Outfitters, Inc. Consolidated Statements of Stockholders' Equity American Eagle Outfitters, Inc. Consolidated Statements of Cash Flows Urban Outfitters, Inc. Consolidated Balance Sheets Urban Outfitters, Inc. Consolidated Statements of Income Urban Outfitters, Inc. Consolidated Statements of Stockholders' Equity Urban Outfitters, Inc. Consolidated Statements of Cash Flows Market Price per Share for Urban Outfitters, Inc. and American Eagle Outfitters' Stock Compute the total asset turnover ratio for both companies for the year. Which company is utilizing assets more effectively to generate sales? Why do you think that? Compare the total asset turnover ratio for both companies to the industry average. On average, are these two companies utilizing assets to generate sales better or worse than their competitors? How much cash was provided by operating activities for the year by each company? What was the percentage change in operating cash flows (1) from 2005 to 2006 and (2) from 2004 to 2005? ( Hint: [Current Year Amount - Prior Year Amount]/Prior Year Amount.) Industry Ratio Report AEO Balance Sheets AEO Income Statements AEO Stmts of Stockholders' Eq AEO Statements of Cash Flow Urban Balance Sheets Urban Income Statements Urban Stmts of Stockholders' Eq Urban Stmts of Cash Flow Market Prices
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Retail Family Clothing Stores Liquidity COMPANIES USED IN INDUSTRY ANALYSIS Current Ratio 2.70 Company Name Quick Ratio 1.48 ANF Aeropostale Inc ARO Activity American Eagle Outfitters AEO Inventory Turnover 5.13 Ann Taylor Stores ANN Days to Sell Inventory 78.27 days bebe stores Inc BEBE Receivables Turnover 86.28 Carter's Inc CRI Average Collection Period 9.61 days Chico's FAS Inc CHS Fixed Asset Turnover 6.76 Collective Brands Inc PSS Total Asset Turnover 1.85 Foot Locker, Inc FL Accounts Payable Turnover 7.93 Gap Inc GPS Guess? Inc GES Profitability J. Crew Group Inc JCG Gross Profit Margin 40.23% Limited Brands Inc LTD Operating Profit Margin 11.74% Nordstrom, Inc. JWN Net Profit Margin 7.69% Pacific Sunwear of California Inc PSUN Return on Equity 20.68% Ross Stores Inc ROST Return on Assets 14.16% The Buckle Inc BKE Quality of Income 1.62 The Men's Warehouse Inc MW TJX Companies Inc TJX Leverage Urban Outfitters Inc URBN Times Interest Earned 41.28 Interest Coverage Ratio 41.42 Total Debt/Total Equity 0.77 Total Assets/Total Equity 1.77 Dividends Dividend Payout 11.82% Dividend Yield 0.64% Other Advertising-to-Sales
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LLS6e_CP3_3 - CP3-3 Comparing Companies within an Industry...

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