GUESS?, Inc. Analysis of Long-Term Assets: What does GUESS?, Inc. disclose regarding asset impairment? What was its impairment loss, if any, in the most recent year?

GUESS?, Inc. Analysis of Long-Term Assets

Select GUESS?, Inc. to analyze. Yahoo! Finance at http://finance.yahoo.com/quote/GES?p=GES&.tsrc=fin-srch. Alternatively, go to Google Finance at http://www.google.com/finance/quote/GES:NYSE, and you will be presented with a list including that company and its competitors. Acquire the annual report or 10-K for one publicly traded company in the industry, selecting a different company (the SEC EDGAR service at www.sec.gov and the company’s investor relations website itself are good sources).

Required:

1. What does GUESS?, Inc. disclose regarding asset impairment? What was its impairment loss, if any, in the most recent year?

2. Ratio analysis:

a. What does the PPE ratio measure in general?

b. Compute the ratio for the last three years. Round your answers to two decimal places.

c. What do your results suggest about the company?

d. If available, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe GUESS?, Inc differs from or is similar to the industry ratio.