COMPARATIVE ANALYSIS: ABERCROMBIE & FITCH vs.

AEROPOSTALE Refer to the financial statements of Abercrombie & Fitch and Aeropostale that are supplied with this text.

Required:

. Look at Abercrombie & Fitch’s and Aeropostale’s long-term debt footnotes. Which company has a higher percentage of their long-term debt due within the next five years?

. Calculate Abercrombie & Fitch’s and Aeropostale’s times interest earned (accrual basis) for the years ended January 28, 2006 and February 3, 2007.

. Calculate Abercrombie & Fitch’s and Aeropostale’s long-term debt to equity ratio for the years ended January 28, 2006 and February 3, 2007.

. Calculate Abercrombie & Fitch’s and Aeropostale’s debt to equity ratio for the years ended January 28, 2006 and February 3, 2007.

. Calculate Abercrombie & Fitch’s and Aeropostale’s long-term debt to total assets ratio for the years ended January 28, 2006 and February 3, 2007.

. Calculate Abercrombie & Fitch’s and Aeropostale’s debt to total assets ratio for the years ended January 28, 2006 and February 3, 2007.

. Comment on Abercrombie & Fitch’s and Aeropostale’s debt management.