Below are the J. Crew Group, Inc. financial ratios from the 2018 Annual report. Based on the calculated financial ratios -

1. How are the four-principle ratios relevant to J. Crew in terms of predicting failure? Liquidity ratios, Leverage ratios, Activity ratios (Asset utilization), Profitability ratios

2. Examine strategies from the perspective of the business turnaround, renewal and decision making in case of J Crew's financial situation (including possible Chapter 11 bankruptcy)

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References

Crew Group, Inc. (2019).Form 10-K 2018 Annual report.https://investors.jcrew.com/static-files/5d9bbabe-c660-40b7-a5f3-fadabc5af4bd

Beeri,I., & Navot,D. (2014). Turnaround management strategies in local authorities: Managerial, political and national obstacles to recovery.Journal of Management & Organization,20(1), 121-138.

file:///C:/Users/shash/Downloads/Turnaround_management_strategi.pdf

Schweizer, L., & Nienhaus, A. (2017). Corporate distress and turnaround: integrating the literature and directing future research.Business Research, 10(1), 3-47.

file:///C:/Users/shash/OneDrive/Desktop/TUW/DBA%20Courses/DBA%20708/Module%202/Corporate%20distress%20and%20turnaround%20-%20Schweizer%20&%20Nienhaus.pdf

Shaked, I., & Orelowitz, B. (2018). 10 common causes of distress.American Bankruptcy Institute Journal, 37(7), 16-17, 58.

file:///C:/Users/shash/OneDrive/Desktop/TUW/DBA%20Courses/DBA%20708/Module%202/10_Common_Causes_of_Distress%20-%20Shaked%20&%20Orelowitz.pdf

OpenTuition. (2017, January 20).ACCA P5 Predicting and Preventing Corporate Failure[Video]. Retrieved fromhttps://www.youtube.com/watch?v=HpslfTbEbho[11:48]

(2009, September 1).Cash is king, so work your working capital[Video]. Retrieved fromhttps://www.youtube.com/watch?v=PU6Wb9clz58[16:55]

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Ratio	2019	2018	2017	2016	2015	Formula
Current Ratio	0.84	1.02	1.03	1.26	1.21	Current Assets/Current Liabilities
Quick Ratio	0.11	0.27	0.24	0.34	0.2	(Current Assets - Inventory - Advances - Prepayments)/ Current Liabilites
Inventory Turnover	6.36	8.12	8.31	7.97	6.93	Sales/Inventory
Average Collection Period (Days Sales outstanding)	5.93	3.57	0	0	0	Accounts receivable / (Total sales/365)
Total Asset turnover	2.03	1.97	1.69	1.66	0.89	Sales / Total Assets
Debt Ratio	1.4	1.42	1.05	1	0.52	Total Debt/Total Assets
Debt-to-Equity Ratio (D/E)	-1.34	-1.49	-1.91	-1.97	-2.96	Total Debt (Long-term debt)/Total Equity
Times Interest Earned (TIE)	0.01	-1.05	0.62	-18.91	-7.87	EBIT / Total interest charges
Profit Margin	-4.83%	-5.19%	-0.98%	-49.59%	-25.50%	Net Income / Sales
Return on Equity	9.44%	10.69%	3.00%	161.60%	127.47%	Net Income / Total Stockholders Equity(Net worth)