Ratio Analysis-Urban Outfitters Read the overview below and complete the activities that follow. Assessing how well a company's strategy is presently working involves evaluating the strategy from a qualitative standpoint and a quantitative standpoint. The stronger a company's current overall performance, the less likely the need for radical strategy changes. The weaker a company's performance, the more its current strategy must be questioned. The goal of this exercise is for you to understand how well a company's strategy is working based on its financial results. Before completing this exercise, be sure to review Chapter 4, "Evaluating a Company's Resources, Capabilities, and Competitiveness," as well as Table 4.1, "Key Financial Ratios: How to Calculate Them and What They Mean," which provides a compilation of the financial ratios most used to evaluate a company's financial performance and balance sheet strength. You will also need the Urban Outfitters financial statements presented below. 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, and 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 5 0.97 S 2.75 Diluted earnings per share $ 0.96 $ 2.72 Source: Urban Outfitters, Inc., 2019.Consolidated Balance Sheets for Urban Outfitters, Inc., 2018-2019 (in thousands, except per share data) January 31, January 31, 2018 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 Shareholders' 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 . O 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 shares O O 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 $ 684 Retained earnings . .. 1.489.087 1.300.208 Total stockholders' equity . .. . . .. 1.489,098 1,300,90 Total Liabilities and Equity . $2,160,515 $1,952,780 Source: Urban Outfitters, Inc., 2019 10-K.Calculate the following ratios for Urban Outfitters for both 2018 and 2019, Be sure to report items (a) through () 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.) Gross Profit Margin (%) Operating Profit Margin (%) Net Profit Margin (%) Return on Shareholder Equity (%) Return on Assets (%) Debt-to-Equity Ratio Days of Inventory Sl [~[e[ale o Inventory Turmover Average Collection Period