FINANCIAL RATIOS ;

QUESTION :

2.  Rate of Return

1. Auckland Woolens Company reported a 6% operating margin on sales, a 12% pretax operating return on total assets, and $400 million of average total assets.  Compute the (a) operating income (b) total sales, and (c) pretax operating return on total assets.
2. Suzuki Electronics Corporations reported ¥200 millions of sales.  ¥20 million of operation income, and a total asset turnover of five times (¥ is Japanese yen).  Compute the (a) total assets, (b) operating return on sales , and (c) pretax operating return on total assets. 

1. Abercrombie  & Fitch has more than 1,125 stores in the United States , Canada, and the U.K.  The company was established in 1892 and is well known as a supplier of rugged, high- quality outdoor gear.  Excerpts from the company’s annual report for the fiscal year ended January 31, 2009 , are in Exhibit 17.9.Abercrombie & Fitch paid cash dividends $.070 per common share in fiscal 2009, and an average of 86,816 million shares were outstanding during the year.  Assume that Abercrombie & Fitch has no stock options or convertible securities.  The company’s market price on January 31, 2009, was $17.85 per share.  Compute the following financial ratios for fiscal 2009:

1. Current ration
2. Total debt to equity
3. Gross profit rate
4. Return on Sales
5. Return on stockholders’ equity
6. Earnings per share
7. Price earnings
8. Dividend yield
9. Dividend payout