Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Financial Statements for Mens Wearhouse Inc. can be located in the Course Resources CONNECT link. Fill in the data for the three years below.

The Financial Statements for Mens Wearhouse Inc. can be located in the Course Resources CONNECT link. Fill in the data for the three years below. Then provide responses for A, B, C, and D that require a minimum of 120 words for each.

Please enter your ratio calculations below.

Unit 2 Assignment-

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. Already done
  2. 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.

    1. 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.
  1. Comment on Mens Wearhouse, Inc.s Debt to Assets ratio the indicator of leverage -trends for the last three years.
    1. Explain the concept of financial leverage, given the concept of the Debt to Assets ratio, as it applies to the capital structure of Mens Wearhouse, Inc. Include a note to explain why might a .50 Debt to Assets ratio be deemed a benchmark / acceptable / leverage ratio.

  1. To what extent are you impressed or concerned with the percent of debt financing of Mens Wearhouse, Inc.s Total Assets if the industry norm is 65%?

  1. Comment on the trends and the factors influencing the Times Interest Earned multiple.

D. Based on your evaluation of the financial ratios and financial reports, decide on a changed company strategy and explain your reasoning.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook On Corporate Governance In Financial Institutions

Authors: Christine A. Mallin

1st Edition

1784711780, 978-1784711788

More Books

Students also viewed these Finance questions

Question

CFD is highly risky. Do you agree? Give reasons for your answer.

Answered: 1 week ago