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| a. Use the spreadsheet to calculate as many of the company’s Profitability, Turnover-Control, and Leverage and |
| Liquidity ratios as you can for these years (see the slides for a list of possible ratios). |
| b. What do these ratios suggest about the company’s performance over this period? |
| | ANNUAL BALANCE SHEET |
| | ($ MILLIONS) |
| | MENS WEARHOUSE INC |
| | | | Jan10 | Jan09 | Jan08 | Jan07 | Jan06 |
| | ASSETS |
| | Cash & Short-Term Investments | | 186.018 | 104.533 | 99.367 | 179.694 | 263.001 |
| | Net Receivables | | 16.745 | 40.662 | 24.872 | 17.018 | 19.276 |
| | Inventories | | 431.492 | 440.099 | 492.423 | 448.586 | 416.603 |
| | Prepaid Expenses | | | 26.603 | 27.179 | 0.000 | 0.000 |
| | Other Current Assets | | 74.075 | 19.718 | 27.154 | 35.531 | 30.732 |
| | | | ------------------ | ------------------ | ------------------ | ------------------ | -------------- |
| | Total Current Assets | | 708.330 | 631.615 | 670.995 | 680.829 | 729.612 |
| | Gross Plant, Property & Equipment | | | 885.981 | 865.084 | 669.340 | 611.957 |
| | Accumulated Depreciation | | | 498.509 | 454.917 | 379.700 | 342.371 |
| | | | ------------------ | ------------------ | ------------------ | ------------------ | -------------- |
| | Net Plant, Property & Equipment | | 344.746 | 387.472 | 410.167 | 289.640 | 269.586 |
| | Intangibles | | 59.414 | 65.268 | 75.609 | 61.765 | 63.073 |
| | Other Assets | | 119.616 | 103.375 | 99.696 | 64.718 | 61.003 |
| | | | ------------------ | ------------------ | ------------------ | ------------------ | -------------- |
| | TOTAL ASSETS | | 1,232.106 | 1,187.730 | 1,256.467 | 1,096.952 | 1,123.274 |
| | LIABILITIES |
| | Long Term Debt Due In One Year | | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
| | Accounts Payable | | 83.052 | 108.800 | 146.713 | 111.213 | 125.064 |
| | Taxes Payable | | 23.936 | 0.019 | 5.590 | 19.676 | 21.086 |
| | Accrued Expenses | | | 66.542 | 70.222 | 75.458 | 72.531 |
| | Other Current Liabilities | | 117.047 | 44.862 | 54.730 | 19.791 | 19.404 |
| | | | ------------------ | ------------------ | ------------------ | ------------------ | -------------- |
| | Total Current Liabilities | | 224.035 | 220.223 | 277.255 | 226.138 | 238.085 |
| | Long Term Debt | | 43.491 | 62.916 | 92.399 | 72.967 | 207.750 |
| | Deferred Taxes | | | 2.700 | 4.000 | 12.200 | 24.400 |
| | Other Liabilities | | 62.236 | 59.743 | 66.876 | 31.875 | 25.506 |
| | | | ------------------ | ------------------ | ------------------ | ------------------ | -------------- |
| | TOTAL LIABILITIES | | 329.762 | 345.582 | 440.530 | 343.180 | 495.741 |
| | EQUITY |
| | Common Stock | | 0.705 | 0.700 | 0.696 | 0.691 | 0.671 |
| | Capital Surplus | | 327.742 | 315.404 | 305.209 | 286.120 | 255.214 |
| | Retained Earnings | | 986.523 | 938.580 | 923.713 | 775.857 | 641.558 |
| | Less: Treasury Stock | | 412.626 | 412.536 | 413.681 | 308.896 | 269.910 |
| | | | ------------------ | ------------------ | ------------------ | ------------------ | -------------- |
| | TOTAL EQUITY | | 902.344 | 842.148 | 815.937 | 753.772 | 627.533 |
| | | | ------------------ | ------------------ | ------------------ | ------------------ | -------------- |
| | TOTAL LIABILITIES & EQUITY | | 1,232.106 | 1,187.730 | 1,256.467 | 1,096.952 | 1,123.274 |
| | Common Shares Outstanding | | 52.288 | 51.918 | 51.479 | 53.919 | 53.069 |
| | | | | ANNUAL INCOME STATEMENT |
| | | | | (MILLIONS, EXCEPT PER SHARE) |
| | | | Jan10 | Jan09 | Jan08 | Jan07 | Jan06 |
| | Sales | | 1,909.575 | 1,972.418 | 2,112.558 | 1,882.064 | 1,724.898 |
| | Cost of Goods Sold | | 1,025.759 | 1,031.241 | 1,062.205 | 1,004.972 | 965.889 |
| | | | ------------------- | ------------------ | ------------------ | ------------------ | --------------- |
| | Gross Profit | | 883.816 | 941.177 | 1,050.353 | 877.092 | 759.009 |
| | Selling, General, & Administrative Exp. | | 732.722 | 757.073 | 741.405 | 591.767 | 531.839 |
| | | | ------------------- | ------------------ | ------------------ | ------------------ | --------------- |
| | Operating Income Before Deprec. | | 151.094 | 184.104 | 308.948 | 285.325 | 227.170 |
| | Depreciation,Depletion,&Amortization | | 86.090 | 90.665 | 80.296 | 61.387 | 61.874 |
| | | | ------------------- | ------------------ | ------------------ | ------------------ | --------------- |
| | Operating Profit | | 65.004 | 93.439 | 228.652 | 223.938 | 165.296 |
| | Interest Expense | | 0.332 | 4.300 | 5.046 | 9.216 | 5.888 |
| | Non-Operating Income/Expense | | 0.000 | 2.592 | 5.987 | 9.786 | 3.280 |
| | Special Items | | 3.200 | (2.968) | 0.000 | 0.000 | 0.000 |
| | | | ------------------- | ------------------ | ------------------ | ------------------ | --------------- |
| | Pretax Income | | 67.872 | 88.763 | 229.593 | 224.508 | 162.688 |
| | Total Income Taxes | | 22.364 | 29.919 | 82.552 | 75.933 | 58.785 |
| | | | ------------------- | ------------------ | ------------------ | ------------------ | --------------- |
| | Income Before Extraordinary |
| | Items & Discontinued Operations | | 45.508 | 58.844 | 147.041 | 148.575 | 103.903 |
| | | | ------------------- | ------------------ | ------------------ | ------------------ | --------------- |
| | Savings Due to Common Stock Equiv. | | (0.834) | 0.000 | 0.000 | 0.000 | 0.000 |
| | | | ------------------- | ------------------ | ------------------ | ------------------ | --------------- |
| | Adjusted Net Income | | 44.674 | 58.844 | 147.041 | 148.575 | 103.903 |
| | EPS Basic from Operations | | 0.820 | 1.180 | 2.760 | 2.710 | 2.010 |
| | EPS Diluted from Operations | | 0.820 | 1.170 | 2.730 | 2.620 | 1.950 |
| | Dividends Per Share | | 0.280 | 0.280 | 0.230 | 0.200 | 0.000 |
| | Com Shares for Basic EPS | | 52.280 | 51.645 | 53.258 | 53.111 | 53.753 |
| | Com Shares for Diluted EPS | | 52.280 | 51.944 | 53.890 | 54.749 | 55.365 |
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c2_problem.xls
