rct-abercrombie & fitch
rct-abercrombie & fitch
rct-abercrombie & fitch
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Part E. Financial Analysis<br />
Profitability Ratios<br />
A&F 2008 2007<br />
Profit margin 0.07 0.12<br />
Asset turnover 1.30 1.38<br />
Return on assets 0.10 0.17<br />
Return of equity 0.15 0.27<br />
• This shows that from 2007 to 2008 the company lost in net income for every<br />
dollar in net sales. This means that the company is loosing money.<br />
• The return on assets and return on equity decreased significantly in both this<br />
means that the stockholders are loosing money off of each dollar invested.<br />
• The loss in asset turnover means that A&F is not using properly their assets<br />
and should look for other ways to invest in their company.