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Review the financial statements for Abercrombie and Fitch

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Balance Sheet:

-What components of stockholders' equity do each of the companies disclose?
-Do the companies have preferred stock shares outstanding? If so, what special features do these shares contain?
-Do any of the companies report treasury shares? If so, do the companies disclose the reason for reacquiring the shares?

Income Statement:

-What are the basic and diluted earnings per share for each company?
-Have the companies reported any discontinued operations for the last year?
-Do the companies disclose any stock compensation plans? If so, are they reporting such plans under the fair value or intrinsic value methods? What was the value of compensation expense measured for any outstanding stock option plans?

Financial Ratios:

Compute the following ratios. Also, interpret and assess each group of ratios for the company. What type of story are the ratios telling the analyst?

Profitability ratios:
-Gross profit margin
-Net profit margin
-Return on stockholders' equity

Liquidity ratios:
-Current ratio
-Quick ratio
-inventory turnover

Leverage ratios:
-Debt-to-assets
-Debt-to-equity
-Times-covered ratio

Do you find the balance sheet, income statement or other measures such as ratios the most informative? What type of information do you find in footnotes to the financial statements?

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Solution Summary

Solution assists in reviewing the financial statements for Abercrombie and Fitch vs. Hennes & Mauritz

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Balance Sheet:

-What components of stockholders' equity do each of the companies disclose?
-Do the companies have preferred stock shares outstanding? If so, what special features do these shares contain?
-Do any of the companies report treasury shares? If so, do the companies disclose the reason for reacquiring the shares?

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