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I am double-checking my work. If wrong, please explain so I can correct my mistakes. Ratio Analysis-Urban Outfitters Read the overview below and complete the
I am double-checking my work. If wrong, please explain so I can correct my mistakes.
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) Source: Urban Outfitters, Inc., 2019. Consolidated Balance Sheets for Urban Outfitters, Inc., 2018-2019 (in thousands, except per share data) Assets Current Assets Cash and cash equivalents Short-term investments Receivables, net Merchandise inventories Prepaid expenses and other current assets Total current assets. Net property and equipment . Deferred income taxes and Other assets Total assets Liabilities and Shareholders' Equity Current Liabilities Accounts payable Accrued salaries and benefits . Accrued expenses and Other current liabilities Total current liabilities. Long-term debt Deferred rent and other liabilities Total liabilities \begin{tabular}{rrrr} $128,246 & $ & 144,414 \\ 36,058 & & 54,799 \\ 195,910 & & 187,431 \\ \hline 360,214 & & $386,644 \\ 0 & & 0 \\ \cline { 1 - 2 } 284,773 & & 291,663 \\ \hline 671,417 & & 651,877 \end{tabular} Commitments and Contingencies Equity Preferred stock $.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding Common stock $.0001 par value; 200,000,000 shares authorized; 105,642,283 and 108,248,568 shares issued and outstanding Additional paid-in capital . Retained earnings Total stockholders' equity 0 Total Liabilities and Equity 11 Total Liabilities and Equity 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 (e) 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.)Step by Step Solution
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