Assessing a Company's Strategy

Read the overview below and complete the activities that follow.

Assessing how well a company's strategy is presently working involves evaluating the strategy from a qualitative

standpoint And ${?}^a$ quantitative standpoint. The stronger a company's current overall performance, the less likely the need

for radical strategy changes. The weaker a company's performance, the more its current strategy must be questioned.

The goal of this exercise is for you to understand how well a company's strategy works based on its financial results.

Before completing this exercise, be sure to review Chapter $4,$ "Evaluating a Company's Resources, Capabilities, and

Competitiveness," as well as Table $4\mathrm{.}1,$ "Key Financial Ratios: How to Calculate Them and What They Mean," which

provides a compilation of the financial ratios most used to evaluate a company's financial performance and balance sheet

strength. You will also need the Urban Outfitters financial statements presented below.

Source: Urban Outfitters, Incorporated, Annual Report $2022.$

Consolidated Balance Sheets for Urban Outfitters, Incorporated

January $31,2021$ to January $31,2022$

$($in thousands, except per share data$)$

Source: Urban Outfitters, Incorporated, Annual Report $2022.$

Source: Urban Outfitters, Incorporated, Annual Report $2022.$