BM 320 Assignment 1
a. Use the financial statements below to calculate the following ratios for each year for the Mens Wearhouse chain of
men's clothing stores:
	Gross margin
	Current ratio
	Inventory turnover
	Debt to equity
b. What does each ratio suggest about the companys performance over this period? Keep in mind that 2008 marked the
start of the financial crisis ("great recession") that slowed economic activity.
c. Show your calculations for a) and your answers for b) in the space below the Income Statement.
	ANNUAL BALANCE SHEET
	($ MILLIONS)
	MENS WEARHOUSE INC
			2010	2009	2008	2007	2006
	ASSETS
	Cash & Short-Term Investments		186.018	104.533	99.367	179.694	263.001
	Net Receivables		16.745	40.662	24.872	17.018	19.276
	Inventories		431.492	440.099	492.423	448.586	416.603
	Prepaid Expenses			26.603	27.179	0.000	0.000
	Other Current Assets		74.075	19.718	27.154	35.531	30.732
			------------------	------------------	------------------	------------------	--------------
	Total Current Assets		708.330	631.615	670.995	680.829	729.612
	Gross Plant, Property & Equipment		887.836	885.981	865.084	669.340	611.957
	Accumulated Depreciation		543.090	498.509	454.917	379.700	342.371
			------------------	------------------	------------------	------------------	--------------
	Net Plant, Property & Equipment		344.746	387.472	410.167	289.640	269.586
	Intangibles		59.414	65.268	75.609	61.765	63.073
	Other Assets		119.616	103.375	99.696	64.718	61.003
			------------------	------------------	------------------	------------------	--------------
	TOTAL ASSETS		1,232.106	1,187.730	1,256.467	1,096.952	1,123.274
	LIABILITIES
	Long Term Debt Due In One Year		0.000	0.000	0.000	0.000	0.000
	Accounts Payable		83.052	108.800	146.713	111.213	125.064
	Taxes Payable		23.936	0.019	5.590	19.676	21.086
	Accrued Expenses			66.542	70.222	75.458	72.531
	Other Current Liabilities		117.047	44.862	54.730	19.791	19.404
			------------------	------------------	------------------	------------------	--------------
	Total Current Liabilities		224.035	220.223	277.255	226.138	238.085
	Long Term Debt		43.491	62.916	92.399	72.967	207.750
	Deferred Taxes			2.700	4.000	12.200	24.400
	Other Liabilities		62.236	59.743	66.876	31.875	25.506
			------------------	------------------	------------------	------------------	--------------
	TOTAL LIABILITIES		329.762	345.582	440.530	343.180	495.741
	EQUITY
	Common Stock		0.705	0.700	0.696	0.691	0.671
	Capital Surplus		327.742	315.404	305.209	286.120	255.214
	Retained Earnings		986.523	938.580	923.713	775.857	641.558
	Less: Treasury Stock		412.626	412.536	413.681	308.896	269.910
			------------------	------------------	------------------	------------------	--------------
	TOTAL EQUITY		902.344	842.148	815.937	753.772	627.533
			------------------	------------------	------------------	------------------	--------------
	TOTAL LIABILITIES & EQUITY		1,232.106	1,187.730	1,256.467	1,096.952	1,123.274
	Common Shares Outstanding		52.288	51.918	51.479	53.919	53.069
				ANNUAL INCOME STATEMENT
				(MILLIONS)
			2010	2009	2008	2007	2006
	Sales		1,909.575	1,972.418	2,112.558	1,882.064	1,724.898
	Cost of Goods Sold		1,025.759	1,031.241	1,062.205	1,004.972	965.889
			-------------------	------------------	------------------	------------------	---------------
	Gross Profit		883.816	941.177	1,050.353	877.092	759.009
	Selling, General, & Administrative Exp.		732.722	757.073	741.405	591.767	531.839
	Depreciation,Depletion,&Amortization		86.090	90.665	80.296	61.387	61.874
			-------------------	------------------	------------------	------------------	---------------
	Operating Profit		65.004	93.439	228.652	223.938	165.296
	Interest Expense		0.332	4.300	5.046	9.216	5.888
	Non-Operating Income/Expense		0.000	2.592	5.987	9.786	3.280
	Special Items		3.200	(2.968)	0.000	0.000	0.000
			-------------------	------------------	------------------	------------------	---------------
	Pretax Income		67.872	88.763	229.593	224.508	162.688
	Total Income Taxes		22.364	29.919	82.552	75.933	58.785
			-------------------	------------------	------------------	------------------	---------------
	Net income		45.508	58.844	147.041	148.575	103.903