Prepare a comparative balance sheet, income statement, and statement of cash flows, and perform a horizontal analysis of Victoria's secret balance sheet, income statement, and statement of cash flows for the most recent two years.
Identify at least one significant change (increase or decrease) from one year to the next in a balance sheet, income statement, and statement of cash flow account. Identify the causes of the change in each of these accounts.
Discuss the implications of each of these account changes and your assessment of the company based on these changes. Do these changes reflect positively or negatively on the company, and what is your assessment of the outlook for the company?
Competitor company American Eagle
American Eagle
2023 Victoria's Secret \& Co. 2022 Victoria's Secret \& Co. \begin{tabular}{lrr} Key Metrics & US\$ million \\ \hline Fiscal Period: & $ & 2,023.0 \\ Total Revenue & $ & 6,344.0 \\ Cost of Revenue, Total & $ & 4,070.0 \\ \hline Gross Profit & $ & 2,274.0 \\ Operating Income & $ & 478.0 \\ Net Income & $ & 348.0 \\ Effective Tax Rate & & \\ Normalized EBITDA & $ & 78.945% \\ Normalized EBIT & $ & 500.0 \\ & & \end{tabular} \begin{tabular}{lrr} Key Metrics & US\$ million \\ \hline Fiscal Period: & & 2,022.0 \\ Total Revenue & $ & 6,785.0 \\ Cost of Revenue, Total & $ & 4,025.0 \\ Gross Profit & $ & 2,760.0 \\ Operating Income & $ & 870.0 \\ Net Income & $ & 646.0 \\ Effective Tax Rate & & \\ Normalized EBITDA & \multirow{2}{*}{$} & 23.369% \\ Normalized EBIT & $ & 883.0 \\ & \multicolumn{2}{c}{$} \end{tabular} \begin{tabular}{lrrrrr} Income Statement & Uss million & & Income Statement & & Uss million \\ \cline { 1 - 1 } \cline { 5 - 6 } Revenue & & 6,344.0 & & Revenue & \multirow{2}{*}{6,785.0} \\ Cost of Revenue, Total & & 4,070.0 & & Cost of Revenue, Total & 4,025.0 \\ Gross Margin & 35.845% & & Gross Margin & 40.678% \\ Gross Profit & 2,274.0 & & Gross Profit & 2,760.0 \\ Operating expenses & & 5,866.0 & & Operating expenses & 5,915.0 \end{tabular} 2023 American Eagle Outfitters Inc. 2022 American Eagle Outfitters Inc. \begin{tabular}{lrr} Key Metrics & & Uss million \\ \hline Net Change in Cash & $ & (264.561) \\ \hline Net Cash - Beginning Balance & $ & 434.77 \\ Net Cash - Ending Balance & $ & 170.209 \\ \hline \end{tabular} \begin{tabular}{lrr} Key Metrics & Uss million \\ \hline Net Change in Cash & $ & (415.707) \\ \hline Net Cash - Beginning Balance & $ & 850.477 \\ Net Cash - Ending Balance & $ & 434.77 \end{tabular} 2023 Victoria's Secret \& Co. 2022 Victoria's Secret \& Co. \begin{tabular}{lrr} Key Metrics & US\$ million \\ \hline Fiscal Period: & $ & 2,023.0 \\ Total Revenue & $ & 6,344.0 \\ Cost of Revenue, Total & $ & 4,070.0 \\ \hline Gross Profit & $ & 2,274.0 \\ Operating Income & $ & 478.0 \\ Net Income & $ & 348.0 \\ Effective Tax Rate & & \\ Normalized EBITDA & $ & 78.945% \\ Normalized EBIT & $ & 500.0 \\ & & \end{tabular} \begin{tabular}{lrr} Key Metrics & US\$ million \\ \hline Fiscal Period: & & 2,022.0 \\ Total Revenue & $ & 6,785.0 \\ Cost of Revenue, Total & $ & 4,025.0 \\ Gross Profit & $ & 2,760.0 \\ Operating Income & $ & 870.0 \\ Net Income & $ & 646.0 \\ Effective Tax Rate & & \\ Normalized EBITDA & \multirow{2}{*}{$} & 23.369% \\ Normalized EBIT & $ & 883.0 \\ & \multicolumn{2}{c}{$} \end{tabular} \begin{tabular}{lrrrrr} Income Statement & Uss million & & Income Statement & & Uss million \\ \cline { 1 - 1 } \cline { 5 - 6 } Revenue & & 6,344.0 & & Revenue & \multirow{2}{*}{6,785.0} \\ Cost of Revenue, Total & & 4,070.0 & & Cost of Revenue, Total & 4,025.0 \\ Gross Margin & 35.845% & & Gross Margin & 40.678% \\ Gross Profit & 2,274.0 & & Gross Profit & 2,760.0 \\ Operating expenses & & 5,866.0 & & Operating expenses & 5,915.0 \end{tabular} 2023 American Eagle Outfitters Inc. 2022 American Eagle Outfitters Inc. \begin{tabular}{lrr} Key Metrics & & Uss million \\ \hline Net Change in Cash & $ & (264.561) \\ \hline Net Cash - Beginning Balance & $ & 434.77 \\ Net Cash - Ending Balance & $ & 170.209 \\ \hline \end{tabular} \begin{tabular}{lrr} Key Metrics & Uss million \\ \hline Net Change in Cash & $ & (415.707) \\ \hline Net Cash - Beginning Balance & $ & 850.477 \\ Net Cash - Ending Balance & $ & 434.77 \end{tabular}
