Using the formulas in Table 4.1 and Urban Outfitters’s financial statement starting on
page 117, calculate the following measures of financial performance. Be sure to report
items (a) through (e) in percentages (i.e., multiply your result x 100).
a. Gross profit margin
2017: 35.10%
2016: 34.88%
b. Operating profit margin
2017: 9.547%
2016: 10.26%
c. Net profit margin
2017: 6.15%
2016: 6.516%
d. Times-interest-earned (or coverage) ratio
2017: 81.39
2016: 185.99
e. Return on stockholders’ equity
2017: 25.75%
2016: 30.78%
f. Return on assets
2017: .1798
2016: .1919
g. Debt-to-equity ratio
2017: .7177
2016: .9015
h. Days of inventory
2017: 53.7 Days
2016: 53.73 Days
i. Inventory turnover ratio
2017: 6.79
2016: 6.79
j. Average collection period
2017: 5.61
2016: 8.023
A.
Gross profit margin
2017: 35.10%
2016: 34.88%
B.
Operating profit margin
2017: 9.547%
2016: 10.26%
C.
Net profit margin
2017: 6.15%
2016: 6.516%
D.
Times-interest-earned (or coverage) ratio
2017: 81.39
2016: 185.99
E.
Return on stockholders’ equity
2017: 25.75%
2016: 30.78%
F.
Return on assets
2017: .1798
2016: .1919
G.
Debt-to-equity ratio
2017: .7177
2016: .9015
H.
Days of inventory
2017: 53.7 Days
2016: 53.73 Days
I.
Inventory turnover ratio
2017: 6.79
2016: 6.79
J.
Average collection period
2017: 5.61
2016: 8.023
