Analyzing a Company over Time Refer to the annual report for American Eagle Outfitters in Appendix B.

Question:

Analyzing a Company over Time
Refer to the annual report for American Eagle Outfitters in Appendix B.
Required:
1. The annual report or 10-K report for American Eagle Outfitters provides selected financial data for the last five years. Compute the total ratio for each of the most recent four years.
2. In Chapter 2, we discussed the current ratio. Compute this ratio for the most recent four years from information in Item 6.
3. What do your results from the trends in the two ratios suggest to you about American Eagle Outfitters?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.