Integrated Financial Case Study

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Integrated Financial Analysis Case Study: Urban Outfitters Lorin Gdula MBA 6014 June 29, 2012 An audit has been performed on the financial statements of Urban Outfitters from a specific period of time. This audit is composed of consolidated balance sheets, consolidated statements of income, shareholders’ equity, and cash flows for each of the three years in the period. This analysis is to show my opinion on these financial statements based on the audits that I conducted. Financial analysis’s can be tedious because they are demonstrated in regards to a company’s financial position. It is the responsibility of the company’s management team to make sure that these analyses are conducted to see where they stand from a financial standpoint. Within the ratio analysis, I studied the components of Urban Outfitters balance sheets, income statements, and statements of cash flow. Here I was able to analyze the proportion certain accounts in regards to other accounts. I was also able to look at the growth pattern of the account to determine forecast for the following years. When comparing financial ratios of the time period of 2008-2009, a percent of change in current assets of 44% which was a dramatic increase from 2008. In the attached balance sheet, it is very evident of the shift in assets. When looking at the liabilities, there is a negative percent of change, which could cause issues in the near future for the company. Urban Outfitters net revenue grew 14% from 2008 to 2009 which was a significant impact on their bottom line. No matter what, it is always positive to show growth, and in this case, Urban Outfitters is a very large company and when comparing that growth to their competitors, it needed be higher to maintain their position in the market. Growth of higher than GDP is
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