Financial Statements
Year over year, American Apparel, Inc. has seen revenues shrink from $633.9M USD to $608.9M USD, though the company was able to grow net income from a loss of $106.3M USD to a smaller loss of $68.8M USD. A reduction in the percentage of sales devoted to cost of goods sold from 49.38% to 49.22% was a key component in the bottom line growth in the face of falling revenues.
American Apparel, Inc. may have more financial risk than other companies in the Textiles, Apparel and Luxury Goods industry as it is one of the most highly leveraged with a Debt to Total Capital ratio of 178.66%. This ratio actually increased over the last year. Additionally, an examination of near-term assets and liabilities shows that there are not enough liquid assets to satisfy current obligations. Accounts Receivable are among the industry's worst with 13.79 days worth of sales outstanding. This implies that revenues are not being collected in an efficient manner. Last, American Apparel, Inc. is among the most efficient in its industry at managing inventories, with only 193.02 days of its Cost of Goods Sold tied up in inventory.
American Apparel, Inc. may have more financial risk than other companies in the Textiles, Apparel and Luxury Goods industry as it is one of the most highly leveraged with a Debt to Total Capital ratio of 178.66%. This ratio actually increased over the last year. Additionally, an examination of near-term assets and liabilities shows that there are not enough liquid assets to satisfy current obligations. Accounts Receivable are among the industry's worst with 13.79 days worth of sales outstanding. This implies that revenues are not being collected in an efficient manner. Last, American Apparel, Inc. is among the most efficient in its industry at managing inventories, with only 193.02 days of its Cost of Goods Sold tied up in inventory.