A Financial Ratio Quarterly Trend Analysis of:

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Table of Contents Section A 1 Financial Ratios 1 Liquidity 3 Assets Ratio 5 Profitability Ratios 5 Debt Ratios 6 Market Ratios 6 Section B 7 Quarterly Financial Analysis 7 Liquidity 7 Assets Utilization 8 Profitability 8. Debt Analysis 8 Market Position 8 Section C 9 Abercrombie & Fitch and Clothing Industry 10 Section D 10 SWOT Analysis 10 Strengths 10 Weaknesses 10 Opportunities 10 Threats 11 Section E 12 Ethics and Corporate Governance 12 Section F 13 Conclusions and Decisions 13 Appendix A 14 Industry vs. Abercrombie and Fitch 15 References 16 Financial Ratio Abercrombie & Fitch Co. (A&F) through its subsidiaries, is a specialty retailer that operates stores and direct-to-consumer operations selling…show more content…
Also impacting the company’s profitability were unplanned markdowns on unsold spring product. Since the current ratio of the firm is greater than 1 it shows that the company has the ability to meet its financial obligations Asset Utilization Based on the 4 quarters listed above, the financial trend is wavering at best. Indicated in the first quarter reasonable increase in supply and demand by the price index ratio, but then takes a dip in the 2nd quarter, to then again increase in 3rd quarter more than the first and then later drop in the 4th. The progression suggests that this business may be subject to seasonal profits or tracking, but does not take away from the economic climate currently at hand. This is based on a composite of the accounts receivables and credit sales respectively. Profitability In evaluating the profitability Abercrombie and Fitch gross profit margins is high which it appears that customers are willing to pay for a company 's product, over and above the company 's cost for that product. It is logical that teens because of popularity of Abercrombie & Fitch among their age group would pay high end prices. When evaluating the net profit margin one can assume that the reason that in the first quarter and forth quarter the net profit margin ratio is in the negative is due to the fact due to the high operating expense. Debt Utilization Debt/Equity
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