Financial Statement Analysis Project- Liz Clairborne Inc and Jones Apparel Group
FINANCIAL STATEMENT ANALYSIS PROJECT
LIZ CLAIRBORNE INC AND JONES APPAREL GROUP
TABLE OF CONTENTS
I. INTRODUCTION - 1 -
II. HORIZONTAL ANALYSIS OF JONES APPAREL GROUP - 2 -
III. SIGNIFICANT PERCENTAGE INCREASES - 3 -
IV. FINANCIAL RATIO ANALYSIS - 5 - 1. Current Ratio - 5 - 2. Gross Margin Percentage - 6 - 3. Profit Margin Percentage - 6 - 4. Accounts Receivable Turnover and Days to Collect - 7 - 5. Allowance for Doubtful Accounts to Accounts Receivable - 8 - 6. Inventory Turnover & Days to Sell - 8 - 7. Return on Equity - 9 - 8. Return on Assets - 10 - 9. Debt to Equity - 10 - 10. Times Interest Earned - 11 -
V. INVENTORY COST FLOW - 12 -
VI. DEPRECIATION METHODS - 12 -
VII. LIABILITIES - 12 -
VIII. CASH FLOWS: MAJOR SOURCES AND USES OF CASH. - 17 -
IX. REPORTS OF THE INDEPENDENT AUDITOR-- INTERPRETATIONS. - 17 -
X. CHOICE OF INVESTMENT AND CONCLUSION - 18 -
I. INTRODUCTION
This paper will give a financial analysis of the Jones Apparel Group and Liz Claiborne Inc. Both of these companies are involved in the production and selling of apparel and accessories. These two companies operate in an environment of intense competition; they are not only competitors themselves, but face national, regional and international competition in regard to customer base and market share.
Both companies had about $ 4 billion in sales last year (2008), although, they have different growth strategies: Jones buys huge companies, Liz Claiborne buys smaller ones. In addition, each apparel maker owns or licenses dozens of well-known competing brand names. Jones has Jones-New York, Polo Jeans, Nine West and Anne Klein. Liz Claiborne has Claiborne, Dana Buchman, Ellen Tracy and its recently acquired young urban brand, Enyce[1].
In general, this is an industry that has historically been subject to cyclical variations and depends on, though not limited to, general economic and business conditions, tastes and discretionary spending
LIZ CLAIRBORNE INC AND JONES APPAREL GROUP
TABLE OF CONTENTS
I. INTRODUCTION - 1 -
II. HORIZONTAL ANALYSIS OF JONES APPAREL GROUP - 2 -
III. SIGNIFICANT PERCENTAGE INCREASES - 3 -
IV. FINANCIAL RATIO ANALYSIS - 5 - 1. Current Ratio - 5 - 2. Gross Margin Percentage - 6 - 3. Profit Margin Percentage - 6 - 4. Accounts Receivable Turnover and Days to Collect - 7 - 5. Allowance for Doubtful Accounts to Accounts Receivable - 8 - 6. Inventory Turnover & Days to Sell - 8 - 7. Return on Equity - 9 - 8. Return on Assets - 10 - 9. Debt to Equity - 10 - 10. Times Interest Earned - 11 -
V. INVENTORY COST FLOW - 12 -
VI. DEPRECIATION METHODS - 12 -
VII. LIABILITIES - 12 -
VIII. CASH FLOWS: MAJOR SOURCES AND USES OF CASH. - 17 -
IX. REPORTS OF THE INDEPENDENT AUDITOR-- INTERPRETATIONS. - 17 -
X. CHOICE OF INVESTMENT AND CONCLUSION - 18 -
I. INTRODUCTION
This paper will give a financial analysis of the Jones Apparel Group and Liz Claiborne Inc. Both of these companies are involved in the production and selling of apparel and accessories. These two companies operate in an environment of intense competition; they are not only competitors themselves, but face national, regional and international competition in regard to customer base and market share.
Both companies had about $ 4 billion in sales last year (2008), although, they have different growth strategies: Jones buys huge companies, Liz Claiborne buys smaller ones. In addition, each apparel maker owns or licenses dozens of well-known competing brand names. Jones has Jones-New York, Polo Jeans, Nine West and Anne Klein. Liz Claiborne has Claiborne, Dana Buchman, Ellen Tracy and its recently acquired young urban brand, Enyce[1].
In general, this is an industry that has historically been subject to cyclical variations and depends on, though not limited to, general economic and business conditions, tastes and discretionary spending