As managers, you know that quality reporting to your investors is vital to future growth of the business. It is still early in the lifespan of your business, and you have not yet held a major shareholders’ meeting. You know that you will need to do so in the near future, however. In order to prepare for that event, you need to determine what information is most crucial to investors in clothing retailers. Your assignment is to investigate the reporting made by another clothing retailer and write a report analyzing your findings.
Write a formal report to your management team that is between 1,500 and 2,500 words in which you discuss variance pieces of information presented in the Management’s Discussion and Analysis [MD&A] section of the most recent 10-K for your assigned retailer (see list below). Comment on
The importance of each of the ratios listed below
Why these ratios may or may not be important in the retail clothing industry
How investors might interpret the figures
How the company you are assigned reports on the data.
Discuss what information other than the ratio results is reported in the MD&A.
Discuss the Return on Sales, Return on Assets, Return on Equity, Current Ratio, Quick Ratio, Inventory Turnover, Asset Turnover, Earnings per Share, and the Dividend Payout Ratio.