a. Use the spreadsheet to calculate as many of the company’s Profitability, Turn

Question

a. Use the spreadsheet to calculate as many of the company’s Profitability, Turnover-Control, and Leverage and            Liquidity ratios as you can for these years (see Table 2.5 in text for a list of possible ratios). b. What do these ratios suggest about the company’s performance over this period? ANNUAL BALANCE SHEET ($ MILLIONS) MENS WEARHOUSE INC Jan10 Jan09 Jan08 Jan07 Jan06 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 885.981 865.084 669.340 611.957 Accumulated Depreciation 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, EXCEPT PER SHARE) Jan10 Jan09 Jan08 Jan07 Jan06 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 ------------------- ------------------ ------------------ ------------------ --------------- Operating Income Before Deprec. 151.094 184.104 308.948 285.325 227.170 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 ------------------- ------------------ ------------------ ------------------ --------------- Income Before Extraordinary Items & Discontinued Operations 45.508 58.844 147.041 148.575 103.903 ------------------- ------------------ ------------------ ------------------ --------------- Savings Due to Common Stock Equiv. (0.834) 0.000 0.000 0.000 0.000 ------------------- ------------------ ------------------ ------------------ --------------- Adjusted Net Income 44.674 58.844 147.041 148.575 103.903 EPS Basic from Operations 0.820 1.180 2.760 2.710 2.010 EPS Diluted from Operations 0.820 1.170 2.730 2.620 1.950 Dividends Per Share 0.280 0.280 0.230 0.200 0.000 Com Shares for Basic EPS 52.280 51.645 53.258 53.111 53.753 Com Shares for Diluted EPS 52.280 51.944 53.890 54.749 55.365

Explanation / Answer

Following link has the list of formulas:

https://www.readyratios.com/reference/liquidity/

https://www.readyratios.com/reference/profitability/

https://www.readyratios.com/reference/asset/

https://www.readyratios.com/reference/debt/

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