Question: Refer to the financial statements of American
Refer to the financial statements of American Eagle Outfitters in Appendix B and Urban Outfitters in Appendix C.
Financial statements of American Eagle:
Financial statements of Urban Outfitters:
Required:
1. Compute return on assets for the most recent year. Which company provided the highest return on invested capital during the current year?
2. Use ROA profit driver analysis to determine the cause(s) of any differences. How might the ownership versus the rental of property, plant, and equipment affect the total asset turnover ratio?
3. Compare the ROA profit driver analysis for American Eagle Outfitters and Urban Outfitters to the ROA profit driver analysis for their industry. Where does American Eagle Outfitters outperform or underperform the industry? Where does Urban Outfitters outperform or underperform the industry?
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Far the Year Ende) e n, ergt per shere Jaary S1, Febrary . Febraary 2 Juary 2 Juary 19 a , rn and 2014 Swwmary of Operatrions (2) Total net revenue 3,282,867 3,305,802 3,475,802 3,120,065 2,945 294 Comparable sales increase (decreaseX3) Gross profit Gross profit as a percentage of net sales Operating income Operating income as a percentage of net sales Income from continuing operations Income from continuing operations as a percentage of net sales Per Share Resalty (5% 1,154,674 (6)% 4% (1% 1,182,151 1,113,999 1,390,322 1,144,594 35.2% 155,765 33.7% 40.0% 36.7% 40.1% 141,055 394,606 269335 339.552 4.7% 4.3% 11.4% 8.6% I1.5% KR, T87 82,983 264,098 175,279 195,731 2.6% 2.5% 7.6% 5.6% 6.7% Income from continuing operations per common share-basic 0.46 0.43 135 0.90 0.98 Income from continuing operations per common share-diluted Weighted average 0.46 0.43 1.32 0.89 0.97 common shares Outstanding- basie Weighted average 194,437 192,802 196,211 194.445 199.979 common shares outstanding-diluted Cash dividends per 195,135 194,475 200,665 196,314 201,818 044 common share Balance Sheet 0.50 0.375 2.05 Information Total cash and shon-tem investments Long-lerm investments Total assets 410,697 428,935 630,992 745,044 734.695 847 5,915 1,696.908 1,694, 164 1,756,053 1,950,802 1,879,998 Shon-term debt Long-term debt Stockholders' equity Working capital Current ratio 1,166, 178 S12,513 2.23 1,139,746 1,221,187 1,416,851 1,351,071 431,420 1.94 705,898 2.62 882,087 3.18 786,573 3.03 Avenge return on Stockholders' equity Other Flnancial 7.7% 7.0% 176% I1.0% 9.6% Information (2) Total stores at year-end Capital expenditures Net sales per average selling square foott(4) Total selling square feet at end of period 1,056 245,002 1,066 1,044 93,939 1,069 1,077 75,904 278,499 89 466 $25 347 602 547 526 5,294,744 5,205,948 4,962,923 5,028,493 5,026,144 Net sales per average gross square foot(4) Total gross square feet at end of period Number of employees at end of period 420 444 489 438 422 6,613,100 6,503,486 6,023,278 6,290,284 6,288,425 38,000 40,400 40,100 39,600 39,900 %24 %24 Fiscal Year Ended January 31, 2015 2014 2013 2012 (in thousands, except share amounts and per share data) 2011 Income Statement Data: Net sales 2$ 2$ $ 2,794,925 3,086,608 1,161,342 3,323,077 2$ 2,274,102 2,473,801 860,536 284,725 Gross profit 1,174,930 1,031,531 936,620 Income from operations 365,385 426,831 374,285 414,203 Net income 232,428 282,360 237,314 1.63 185,251 272,958 Net income per common share basic Weighted average common shares outstanding basic 1.70 1.92 1.20 1.64 136,651,899 147,014,869 145,253,691 154,025,589 166,896,322 2$ Net income per common share-diluted Weighted average common shares outstanding-diluted 1.68 1.89 1.62 1.19 1.60 138,192,734 149,225,906 146,663,731 156,191,289 170,333,550 Balance Sheet Data: Working capital 622,089 1,797,211 442,623 1,354,588 24 455,377 24 663,150 363,526 592,953 Total assets 1,888,741 2,221,214 1,483,708 1,794,321 Total liabilities 560,772 527,044 417,440 382,773 Total shareholders' equity $ 1,327,969 24 1,694,170 SAct1E Windows 1.411,548
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