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American Eagle Outfitters, Inc., vs. The Buckle, Inc. RWP12-4 Financial information for American Eagle is presented in Appendix A at the end of the
American Eagle Outfitters, Inc., vs. The Buckle, Inc. RWP12-4 Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book. Required: 1. Calculate the following risk ratios for both companies for the most recent year. Based on these calculations, which company appears to be more risky? a. Receivables turnover ratio. b. Average collection period. c. Inventory turnover ratio. d. Average days in inventory. e. Current ratio. f. Acid-test ratio. g. Debt to equity ratio. 2. Calculate the following profitability ratios for both companies for the most recent year. Based on these calculations, which company appears to be more profitable? a. Gross profit ratio. b. Return on assets. c. Profit margin. d. Asset turnover. e. Return on equity.
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