Eddie Bauer Case Summary

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Pages: 2

In order to grasp the performance of Eddie Bauer’s performance, our team first used trend analysis and common-size financial statements analysis to investigate the firm’s current and past operating performance and financial position. Then we calculated the key ratio that enable us to figure out the primary reason of the success over the time period ending in 2004.
The success of Eddie Bauer can be measured from the success of generating a return on investment, which is the ROE ratio. From 2003 to 2004, Eddie Bauer’s ROE grew from 3% to 21% present. In order to recognize what are the main contribution to the huge ROE growth within one year, we break down ROE into Operating ROA and Financial Leverage Effect. In this case, we mainly focus on