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Mens Warehouse Inc. Types of Ratios 2008 2009 2010 Profitability Ratios Return on equity 18.02% 6.99% 4.95% Return on assets 11.70% 4.95% 3.63% Profit margin

Mens Warehouse Inc.

Types of Ratios

2008

2009

2010

Profitability Ratios

Return on equity

18.02%

6.99%

4.95%

Return on assets

11.70%

4.95%

3.63%

Profit margin

6.96%

2.98%

2.34%

Turnover-Control Ratios

Asset turnover

1.68

1.66

1.55

Fixed-asset turnover

5.15

5.09

5.54

Inventory turnover

2.16

2.34

2.38

Leverage and Liquidity Ratios

Debt to assets

35.06%

29.10%

26.76%

Times interest earned

45.5

20.64

204.43

Current ratio

2.42

2.87

3.16

  1. Answer the questions below to comment on Mens Wearhouse Inc.s Turnover Control trends for the last three years. Provide quantitative information to support your answers.
    1. To what extent are you impressed or concerned with the trends for Inventory Turnover for the past three years? Also comment on the results given the Inventory Turnover industry norm is 3.

Explain an effective plan to continue with positive trends or- address any concerns given a negative trend. Explain the concept of Economic Order Quantity as it would apply here

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