1) Prepare an Operating Asset Management Analysis by calculating for each company the :

a) current ratio b) quick ratio c) receivables turnover d) days sales uncollected e) inventory turnover f) days inventory on hand g) payables turnover h) days payable i) financing period

2) Prepare a Profitability And Total Asset Management Analysis by calculating for each company the:

a) profit margin b) asset turnover c) return on assets

3) Prepare a Financial Risk Analysis by calculating for each company the:

a) debt to equity ratio b) return on equity c) interest coverage ratio*

4) Prepare a Liquidity Analysis by calculating for each company the cash flow yield

a) Cash flows to sales b) Cash flows to assets c) Free cash flows

5) Prepare An Analysis Of Market Strength by calculating for each company the:

a) price/earnings ratio

b) dividend yield

6) Once you have completed the first 5 steps, write a 1-2 page analysis of the American eagle . What is the strengths, weaknesses, etc.? Why would you invest ot not?

A-4 APPENDIX A American Eagle Outfitters, Inc., 2014 Annual Report AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED BALANCE SHEETS February 1, 2014 January 31 2015 (In thousands, except per share amounts) Assets Current assets S 418,933 10,002 291,541 73,882 88,155 45,478 927,991 632,986 49,271 13,530 24,835 Cash and cash equivalents S 410,697 Short-term investments 278,972 67,894 73,848 Merchandise inventory Accounts receivable Prepaid expenses and other Deferred income taxes Total current assets Property and equipment, at cost, net of accumulated depreciation Intangible assets, at cost, net of accumulated amortization 890,513 694,856 13,096 14,035 Non-current deferred income taxes Other assets Total assets $1,696,908 $1,694,164 Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued compensation and payroll taxes Accrued rent Accrued income and other taxes Unredeemed gift cards and gift certificates Current portion of deferred lease credits Other liabilities and accrued expenses $ 191,146 44,884 78,567 33,110 47,888 12,969 S 203,872 23,560 76,397 47,194 13,293 .384 459,093 415,478 Total current liabilities Non-current liabilities: Deferred lease credits Non-current accrued income taxes Other non-current liabilities 54,516 10,456 33,097 98,069 59,510 36,455 112,508 Total non-current liabilities Commitments and contingencies Stockholders' equity Preferred stock, S0.01 par value; 5,000 shares authorized; none issued and outstanding Common stock, $0.01 par value; 600,000 shares authorized; 249,566 shares issued; 194,516 and 2,496 193,149 shares outstanding, respectively Contributed capital Accumulated other comprehensive income Retained earnings Treasury stock, 55,050 and 56,417 shares, respectively, at cost 2.496 573,008 12,157 1,569,851 991.334 1,166,178 9,944) 1,543,085 Total stockholders' equity Total liabilities and stockholders' equity 1,139,746 $1,696,908 Refer to Notes to Consolidated Financial Statements