SPECIALTY RETAILER—LIQUIDITY REVIEW
With this case, we review the liquidity of several specialty retail stores. The companies reviewed and the year end dates are as follows:
1. Abercrombie & Fitch Co. (January 31, 2009—52 week; February 2, 2008—52 week; February 3, 2007—53 week) ‘‘Abercrombie & Fitch Co …is a specialty retailer that operates stores and websites selling casual sportswear apparel.’’ 10 K
2. Limited Brands, Inc. (January 31, 2009—52 week; February 2, 2008—52 week; February 3, 2007—53 week) ‘‘We operate in the highly competitive specialty retail business.’’ 10 K
3. Gap Inc. (January 31, 2009—52 week; February 2, 2008—52 week; February 3, 2007—53 week) ‘‘We are a global specialty retailer offering clothing, accessories, and personal care products.’’ 10 K
|
|
Abercrombie Fitch |
Limited Brands |
GAP |
|||
|
Data Reviewed |
2009 |
2008 |
2009 |
2008 |
2009 |
2008 |
|
Current ratio |
2.41 |
2.10 |
2.28 |
2.12 |
1.86 |
1.68 |
|
Acid test |
1.28 |
1.29 |
1.12 |
1.00 |
.79 |
.78 |
Required
a. For each company, indicate the trend in liquidity.
b. How would you rank these companies, considering liquidity?