Accounting Ratios Term Paper - Grade: a
Financial Analysis and Comparison of American Eagle Outfitters Incorporated & Staples Incorporated
Accounting XXXX: Term Paper
XXXXXXX
11.26.2010
Table of Contents
Table of Contents…………………………………...…2
Introduction…………………………………………..…3
Financial Trends……………………………………….3
Staples Background………………..…………………3
American Eagle Outfitters Background………4
Business Environments…………………………….4
Return on Equity Ratio……………………………..5
Return On Assets Ratio………………………..……6
Gross Profit Margin…………………………….…….7
Net Profit Margin……………………………...………8
Current Ratio………………………………………...…9
Debt to Equity Ratio………………………..………10
Inventory Turnover Ratio……………………….11
Accounts Payable Turnover Ratio…………....13
Quality of Income Ratio…….……………………..14
Analysis and Conclusion………………………….15
Bibliography……………………………….…………..17
End Note References……………………………….17
Appendices A1-A9……………………………...18-26
AEO Inc. Financial Documents……..……...27-31
Staples Financial Documents……………….32-37
Introduction
In this document the financial performance of American Eagle Outfitters Incorporated and Staples Incorporated will be evaluated, compared, and discussed in detail. The goal of this paper is to facilitate an understanding of the financial strategies applied by these retailers and the resultant effect on their bottom line profitability. Using strategies learned in Accounting 5121, standard financial practices are implemented to determine the financial health and profitability of these two companies.
Financial Trends
Financial analysis in this paper is primarily discussed with respect to key financial ratios, which are calculated from annual 10K reports. Two-year ratio trends are calculated in the appendices and reported in the body of this paper in graphical form. These ratios were calculated from 10Ks published at the end of the 2008 & 2009 fiscal years. As such, the trend graphs represent the final financial standings at the end of these two fiscal years.
Company Background and
Accounting XXXX: Term Paper
XXXXXXX
11.26.2010
Table of Contents
Table of Contents…………………………………...…2
Introduction…………………………………………..…3
Financial Trends……………………………………….3
Staples Background………………..…………………3
American Eagle Outfitters Background………4
Business Environments…………………………….4
Return on Equity Ratio……………………………..5
Return On Assets Ratio………………………..……6
Gross Profit Margin…………………………….…….7
Net Profit Margin……………………………...………8
Current Ratio………………………………………...…9
Debt to Equity Ratio………………………..………10
Inventory Turnover Ratio……………………….11
Accounts Payable Turnover Ratio…………....13
Quality of Income Ratio…….……………………..14
Analysis and Conclusion………………………….15
Bibliography……………………………….…………..17
End Note References……………………………….17
Appendices A1-A9……………………………...18-26
AEO Inc. Financial Documents……..……...27-31
Staples Financial Documents……………….32-37
Introduction
In this document the financial performance of American Eagle Outfitters Incorporated and Staples Incorporated will be evaluated, compared, and discussed in detail. The goal of this paper is to facilitate an understanding of the financial strategies applied by these retailers and the resultant effect on their bottom line profitability. Using strategies learned in Accounting 5121, standard financial practices are implemented to determine the financial health and profitability of these two companies.
Financial Trends
Financial analysis in this paper is primarily discussed with respect to key financial ratios, which are calculated from annual 10K reports. Two-year ratio trends are calculated in the appendices and reported in the body of this paper in graphical form. These ratios were calculated from 10Ks published at the end of the 2008 & 2009 fiscal years. As such, the trend graphs represent the final financial standings at the end of these two fiscal years.
Company Background and
References: