rct-abercrombie & fitch
rct-abercrombie & fitch rct-abercrombie & fitch
Part E. Financial Analysis Liquidity Ratios A&F 2008 2007 Working Capital $636,028 $597,142 Current Ratio 2.41 2.10 Receivable turnover 66.22 70.14 Average days’ sales uncollected 5.51 5.20 Inventory turnover 22.04 23.16 Average days’ inventory on hand 16.56 15.75 •The working capital and the current ratio both increased this shows A&F liquidity and ability to pay off debts. The decreases in the inventory turnover and increases in the average days of inventory on hand show A&F inefficient use of inventory.
Part E. Financial Analysis Profitability Ratios A&F 2008 2007 Profit margin 0.07 0.12 Asset turnover 1.30 1.38 Return on assets 0.10 0.17 Return of equity 0.15 0.27 • This shows that from 2007 to 2008 the company lost in net income for every dollar in net sales. This means that the company is loosing money. • The return on assets and return on equity decreased significantly in both this means that the stockholders are loosing money off of each dollar invested. • The loss in asset turnover means that A&F is not using properly their assets and should look for other ways to invest in their company.
- Page 1 and 2: Annual Report Abercrombie & Fitch C
- Page 3 and 4: Part A. Introduction • Mike Jeffr
- Page 5 and 6: Part A. Stock Market Information
- Page 7 and 8: Part C. Income Statement •Abercro
- Page 9 and 10: Part C. Statement of Cash Flows •
- Page 11: • Notes to the financial statemen
- Page 15: Part E. Financial Analysis Market S
Part E. Financial Analysis<br />
Liquidity Ratios<br />
A&F 2008 2007<br />
Working Capital $636,028 $597,142<br />
Current Ratio 2.41 2.10<br />
Receivable turnover 66.22 70.14<br />
Average days’ sales<br />
uncollected<br />
5.51 5.20<br />
Inventory turnover 22.04 23.16<br />
Average days’<br />
inventory on hand<br />
16.56 15.75<br />
•The working capital and the current ratio both increased this<br />
shows A&F liquidity and ability to pay off debts.<br />
The decreases in the inventory turnover and increases in the<br />
average days of inventory on hand show A&F inefficient use of<br />
inventory.
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