Question: Refer to the financial statements of American
Refer to the financial statements of American Eagle (Appendix B) and Urban Outfitters (Appendix C) and the Industry Ratio Report (Appendix D) at the end of this book. Compute the following ratios for fiscal 2014: return on equity, basic earnings per share, net profit margin, inventory turnover, current ratio, debt-to-equity ratio, price/earnings ratio, and dividend yield. Assume the stock price is $40 for Urban Outfitters and $16 for American Eagle. Compare the ratios for each company to the industry average ratios.
Financial statements of American Eagle:
Financial statements of Urban Outfitters:
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Far he Year End) ie n, erg per shere a , ln and er feewil infurein Swmmary of Operatrions (2) Total net revenue Comparable sales increase (decreaseX3) Gross profit Gross profit as a Juary 31, Febraary 1 Junary Febrary . 2014 Juary 19 3,282,867 3,305,802 3,475,802 3,120,065 2,945 294 (6)% 4% (1% 1,154,674 1,113,999 1,390,322 1,144,594 1,182,151 percentage of net sales Operating income Operating income as a percentage of net sales Income from continuing 35.2% 33,7% 40.0% 36.7% 40.1% 155,765 141,055 394,606 269335 339 552 4.7% 4.3% 11.4% 8,6% I1.5% 88,787 82,983 264,098 175,279 195,731 operations Imcome from continuing operations as a percentage of net sales Per Share Resalt Income from continuing operations per common share-basic Income from continuing operations per common share-diluted Weighted average 2.6% 2.5% 76% 5.6% 6.7% 0.46 0.43 135 0.90 0.98 0.46 0.43 1.32 0.89 0.97 common shares outstanding- basic 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 196314 201,818 0.375 044 093 common share Balance Sheet 0.50 2.05 Information Total cash and shon-term 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 1,139,746 1,166,178 1,221,187 705,898 2.62 1,416,851 1,351,071 431,420 1.94 512,513 882,087 3.18 786,573 3.03 2.23 Avemge return on stockholders' equity 7.7% 7.0% 17.6% I1.0% 9.6% Onher Flnancal Information (2) Total stores at year-end Capital expenditures Net sales per average selling square foott4) 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 Fiscal Year Ended January 31, 2013 (in thousands, except share amounts and per share data) 2015 2014 2012 2011 Income Statement Data: Net sales $ 2,794,925 3,086,608 1,161,342 2$ 3,323,077 2$ 2$ Gross profit Income from operations 2,473,801 860,536 284,725 2,274,102 936,620 414,203 1,174,930 1,031,531 365,385 426,831 374,285 Net income 232,428 282,360 237,314 185,251 272,958 Net income per common share-basic Weighted average common shares outstanding basic 1.70 1.92 1.63 1.20 1.64 136,651,899 147,014,869 145,253,691 154,025,589 166,896,322 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 Total assets 24 455,377 24 663,150 622,089 1,797,211 442,623 1,354,588 363,526 24 592,953 1,888,741 2,221,214 1,483,708 417,440 1,794,321 Total liabilities 560,772 527,044 382,773 Total shareholders' equity 1,327,969 24 1,694,170 %24 SAc60208 Windows 1,411,548
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