GM506 Purdue Global Chapter 2 Men’s Wearhouse Inc Financial Ratios Analysis Calculate these three financial ratios for each of the following ‘levers’: Profitability: Return on Assets, Return on Equity, and Profit MarginTurnover-Control: Asset Turnover, Fixed Asset Turnover, and Inventory TurnoverLeverage and liquidity ratios: Total Liabilities to Assets, Current Ratio, and Times Interest Earned Chapter 2 Problem 14
MEN’S WEARHOUSE INC.
BALANCE SHEET ($ millions)
2008
2009
2010
99.367
24.872
492.423
27.179
27.154
670.995
104.533
40.662
440.099
26.603
19.718
631.615
186.018
16.745
431.492
0.000
74.075
708.330
865.084
454.917
410.167
75.609
99.696
1,256.467
885.981
498.509
387.472
65.268
103.375
1,187.730
866.005
521.259
344.746
59.414
119.616
1,232.106
LIABILITIES
Long Term Debt Due In One Year
Accounts Payable
Taxes Payable
Accrued Expenses
Other Current Liabilities
Total Current Liabilities
0.000
146.713
5.590
70.222
54.730
277.255
0.000
108.800
0.019
66.542
44.862
220.223
0.000
83.052
23.936
0.000
117.047
224.035
Long Term Debt
Deferred Taxes
Other Liabilities
TOTAL LIABILITIES
92.399
4.000
66.876
440.530
62.916
2.700
59.743
345.582
43.491
0.000
62.236
329.762
0.696
305.209
923.713
413.681
815.937
1,256.467
0.700
315.404
938.580
412.536
842.148
1,187.730
0.705
327.742
986.523
412.626
902.344
1,232.106
51.479
51.918
52.288
ASSETS
Cash & Short-Term Investments
Net Receivables
Inventories
Prepaid Expenses
Other Current Assets
Total Current Assets
Gross Plant, Property & Equipment
Accumulated Depreciation
Net Plant, Property & Equipment
Intangibles
Other Assets
TOTAL ASSETS
EQUITY
Common Stock
Capital Surplus
Retained Earnings
Less: Treasury Stock
TOTAL EQUITY
TOTAL LIABILITIES & EQUITY
Common Shares Outstanding
INCOME STATEMENT ($ millions, except per share)
2008
2009
2010
Sales
Cost of Goods Sold
Gross Profit
Selling, General, & Administrative Exp.
Operating Income Before Deprec.
Depreciation, Depletion, & Amortization
Operating Profit
Interest Expense
Non-Operating Income/Expense
Special Items
Pretax Income
Total Income Taxes
Income Before Extraordinary
Items & Discontinued Operations
Savings Due to Common Stock Equiv.
Adjusted Net Income
2,112.558
1,062.205
1,050.353
741.405
308.948
80.296
228.652
1,972.418
1,031.241
941.177
757.073
184.104
90.665
93.439
1,909.575
1,025.759
883.816
732.722
151.094
86.090
65.004
5.046
5.987
0.000
229.593
82.552
4.300
2.592
(2.968)
88.763
29.919
0.332
0.000
3.200
67.872
22.364
147.041
0.000
147.041
58.844
0.000
58.844
45.508
(0.834)
44.674
EPS Basic from Operations
EPS Diluted from Operations
2.760
2.730
1.180
1.170
0.820
0.820
Dividends Per Share
0.230
0.280
0.280
53.258
53.890
51.645
51.944
52.280
52.280
Com Shares for Basic EPS
Com Shares for Diluted EPS
2008
Profitability Ratios
Return on Equity
Return on Assets
Profit Margin
Turnover-Control Ratios
Asset Turnover
Fixed-asset Turnover
Inventory Turnover
Leverage and Liquidity Ratios
Debt to Assets
Times interest earned
Current Ratio
2009
2010
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