Financial information for American Eagle is presented in Appendix A and financial information for Buckle is presented in Appendix B
Required:
a Calculate the following risk ratios for both companies for the most recent year.
calculations and final answers to decimal place.
Risk Ratios AMERICAN EAGLE THE BUCKLE
a Receivables turnover ratio times times
b Average collection period days days
c Inventory turnover ratio times times
d Average days in inventory days days
e Current ratio
f Acidtest ratio
g Debt to equity ratio
b Based on these calculations, which company appears to be more risky?
a Calculate the following profitability ratios for both companies for the most recent year.
Profitability Ratios AMERICAN EAGLE THE BUCKLE
a Gross profit ratio
b Return on assets
c Profit margin
d Asset turnover times times
e Return on equity
b Based on these calculations, which company appears to be more profitable?
