Refer to the financial statements of American Eagle Outfitters in Appendix B, Urban Outfitters in Appendix C, and the Industry Ratio Report in Appendix D.

Required:

1. Compute the following ratios for the most recent fiscal year: return on equity, basic earnings per share, net profit margin, inventory turnover, current ratio, debt-to-equity ratio, price/earnings ratio, and dividend yield. Assume the stock price is $40 for Urban Outfitters and $16 for American Eagle. Compare the ratios for each company to the industry average ratios. (Round your answer to 2 decimal places)

2. Based on your computations in part 1, which company is consistently outperforming the industry?

	American Eagle
	Urban Outfitters

rev: 09_26_2016_QC_CS-63233

Urban Outfitters American Eagle Industry Average Return on equity Earnings per share Net profit margin Inventory turnover Current ratio Debt-to-equity Price earnings Dividend yield 0 0 0 0 0 0 Urban Outfitters American Eagle Industry Average Return on equity Earnings per share Net profit margin Inventory turnover Current ratio Debt-to-equity Price earnings Dividend yield 0 0 0 0 0 0