computing ratios and analyzing information

This project will involve accessing information from the Appendix B and C in the text, computing ratios and analyzing information. Be sure to locate the full financial reports and not “selected financial information”. SHOW ALL CALCULATIONS AND ROUND ALL ANSWERS TO TWO PLACES AFTER THE DECIMAL POINT.

You will be SEC Form 10-K for American Eagle Outfitters and Urban Outfitters to answer the following questions;

Calculate the current ratio for American Eagle( 6 pts)

Calculate the current ratio for Urban Outfitters (6 pts)

Which company has a better current ratio and why? ( 4 pts)

Calculate the accounts receivable turnover ratio for American Eagle (6 pts)

Calculate the accounts receivable turnover ratio for Urban Outfitters (6 pts)

Calculate the average collection period for each company. (8 pts)

Which company has a better receivable turnover ratio and why? (4 pts)

Calculate the inventory turnover ratio for American Eagle. (6 pts)

Calculate the inventory turnover ratio for Urban Outfitters. (6 pts)

Calculate the average days to sell inventory for each company. (8 pts)

Which company has a better inventory turnover ratio and why? (4 pts)

Calculate the debt to equity ratio for American Eagle. ( 6 pts)

Calculate the debt to equity ratio for Urban Outfitters (6 pts)

Describe in a complete sentence or two what the debt to equity ratio measures and why this would be important to a potential creditor. (4 pts)

Calculate the net profit margin ratio for American Eagle. (4 pts)

Calculate the net profit margin ratio for Urban Outfitters. (4 pts)

Which company has a better net profit margin ratio and why? (4 pts)

In a short paragraph please explain which company you would rather invest in and give threer reasons why based on this analysis. ( 6 pts)

Name the auditors for each company. ( 2 pts)

 

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