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American Apparel: Drowning in Debt?

Anupam Mehta

Product #:9B16B008_P
Supplier:Ivey
Discipline:Accounting
Setting:United States, 2014
Details:Case (PDF) • 8 pages • 2016-04-14

Subjects:

Financial analysisFinancial performance measurementFinance and investingAccounting

Industries:

Goods, trade, and consumer services

Geography:

United StatesNorth America
Your Price:$9.41

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The American clothing retailer American Apparel recently experienced a loss of $106 million and faced huge debt repayments. In addition, the chief executive officer (CEO) and founder was dismissed because of personal misconduct. Students must evaluate the financial status of the company and address the impact of the CEO’s termination on the financial performance of the company.

Learning Objectives

This case is intended for introductory classes on financial-statement analysis. It is suitable for both postgraduate introductory lectures and undergraduate accounting courses. Students should have a basic knowledge and understanding of accounting concepts. Learning objectives are as follows:
  • To conduct a comprehensive financial evaluation of a company.
  • To use various financial assessment tools, including trend analysis, common size statements, and financial ratios.
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    Case Study: American Apparel: Drowning in Debt? | Ivey Publishing