Question
Answered step-by-step

Consolidated Income Statements for Urban Outfitters, Inc., 2018-2019 (in thousands, except per share data)

2018 2019

Net Sales (total revenue) $3,616,014 $3,950,623

Cost of Sales $2,440,507 $2,603,911

Selling, general, administrative $915,615 $965,399


Operating Income $259,892 $381,313


Other Income (expense)

Other expenses (4,840) (6,325)

Interest income and other, net 6,314 10,565

Income before income taxes 261,366 385,553

Provision for income taxes 153,103 87,550


Net Income $108,263 $298,003


Basic earnings per share $0.97 $2.75

Diluted earnings per share $0.96 $2.72



Consolidated Balance Sheet for Urban Outfitters, Inc. 2018-2019 (in thousands, except per share data)


Jan 31, 2018 Jan 31, 2019


Assets


Current Assets

Cash and cash equivalents $282,220 $358,260

Short-term investments 165,125 279,232

Receivables, net 76,962 80,461

Merchandise inventories 351,395 370,507

Prepaid expenses and other current assets 103,055 114,296

Total current assets 978,757 1,202,756

Net Property and equipment 813,768 796,029

Deferred income taxes and Other assets 160,255 161,730

Total assets $1,952,780 $2,160,515


Liabilities and Shareholder Equity


Current Liabilities

Accounts Payable $128,246 $144,414

Accrued salaries and benefits 36,058 54,799

Accrued expenses and Other current liabilities 195,910 187,431


Total current liabilities $360,214 $386,644


Long-term debt 0 0

Deferred rent and other liabilities 284,773 291,663


Total liabilities 671,417 651,877


Commitments and Contingencies


Equity

Preferred stock $.0001 par value; 10,000,000 share 0 0

authorized; no shares issued and outstanding


Common stock $.0001 par value; 200,000,000 shares 11 11

authorized; 105,642,283 and 108,248,568 shares issued

and outstanding


Additional paid-in capital $ 0 $ 684

Retained earnings $1,489,087 $1,300,208

Total stockholders' equity $1,489,098 $1,300,903


Total Liabilities and Equity $2,160,515 $1,952,780


Calculate the following ratios for Urban Outfitters for both 2018 and 2019. Be sure to report items (a) through (e) in percentages (i.e., multiply your result × 100).


a. Gross profit margin


b. Operating profit margin


c. Net profit margin


d. Return on stockholders' equity


e. Return on assets


f. Debt-to-equity ratio


g. Days of inventory


h. Inventory turnover ratio


i. Average collection period

(Round your answer to 1 decimal place.)


Ratios 2018 2019

a. Gross Profit Margin (%) % %

b. Operating Profit Margin (%) % %

c. Net Profit Margin (%) % %

d. Return on Shareholder Equity (%) % %

e. Return on Assets (%) % %

f. Debt-to-Equity Ratio

g. Days of Inventory

h. Inventory Turnover

i. Average Collection Period


1). From 2018 to 2019, Urban Outfitters' gross profit margins showed a(n)

Favorable decrease

Favorable increase

Unfavorable decrease

Unfavorable increase

Neither


2). From 2018 to 2019, Urban Outfitters' return on shareholder equity showed a(n)

Favorable decrease

Favorable increase

Unfavorable decrease

Unfavorable increase

Neither


3). From 2018 to 2019, Urban Outfitters' return on assets showed a(n)

Favorable decrease

Favorable increase

Unfavorable decrease

Unfavorable increase

Neither


4). From 2018 to 2019, Urban Outfitters' debt-to-equity ratio showed a(n)

Favorable decrease

Favorable increase

Unfavorable decrease

Unfavorable increase

Neither


5).  From 2018 to 2019, Urban Outfitters' inventory turnover ratios showed a(n)

Favorable decrease

Favorable increase

Unfavorable decrease

Unfavorable increase

Neither


6). From 2018 to 2019, Urban Outfitters' average collection period showed a(n)

Favorable decrease

Favorable increase

Unfavorable decrease

Unfavorable increase

Neither

Answer & Explanation
Verified Solved by verified expert
Rated Helpful
<p>ec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac</p> Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet

Unlock full access to Course Hero

Explore over 16 million step-by-step answers from our library

Subscribe to view answer

quet. Lorem ipsum

gue

acinia pulvinar tortor nec facilisis. Pellentes

gue

gue vel laoreet ac, dictum vitae odio. Donec ali

gue

dictum vitae odio. Donec aliquet. Lorem ipsum dolor

gue

s ante, dapibus a molestie consequat, ultrices ac magna.

gue

ongue vel laoree

ec aliquet. Lorem ipsumongue vel

fficitur laoreet. Nam risuec a

ec facilisis. Pellentec a

et, consectetur adipiscing elit.rem i

rem ipsum dolor sitsus

or nec facilisis. Pellena. Fu

facilisis. Pellentesquelesti

sus ante, dapibus a mce

risus ante, dapibus a molestice d

gue

  1. ipiscing elit. Nam
  2. risus ante, dapibus
  3. ipiscing elit. Nam
  4. risus ante, dapibus
  5. a mole
  6. e vel laoreet ac, dic
Step-by-step explanation

et, consectetur adipiscingng elit. Nam lacinia pulvinamolestie consefficitur laoreet. Nam risus ance dui lectu

gue

ctum vitae odio. Donec aliquemolestie consequat,et, consectetulestie consequat, ulng elit. Nam

gue

et, consectetur adipirem ipsum dolor sittesque dapibullentesque dapibus eusce dui lec

gue

a molestie consequat, ultrices ac mae vel laoreetur laoreet. Namng elit. Nam laicitur laoreet

gue

, ultrices ac magna. Fm ipsum dolor sit aec aliquet.ng elit. Nam lacinirem ipsum do

gue

risus ante, dapibus a modictum vitae odio., consectetutrices ac magna. Fuacinia pulvi

gue

rem ipsum dolor sit amec aliquet. Lorem ip, dictum vitaet, consectetur adipinec facili

gue

or nec facilisis. Pellentesqueicitur laoreet.fficitur lalestie consequang elit. N

gue

a molestie consequat, ultricesng elit. Nam lacinifacilisiso. Donec aliquet. Lce dui lectus,

gue

ongue vel laoree

ec aliquet. Lorem ipsumongue vel

fficitur laoreet. Nam risuec a

ec facilisis. Pellentec a

et, consectetur adipiscing elit.rem i

rem ipsum dolor sitsus

or nec facilisis. Pellena. Fu

facilisis. Pellentesquelesti

sus ante, dapibus a mce

risus ante, dapibus a molestice d

gue

  1. ipiscing elit. Nam
  2. risus ante, dapibus
  3. ipiscing elit. Nam
  4. risus ante, dapibus
  5. a mole
  6. e vel laoreet ac, dic