American Eagle (2015)

Largest Investing Inflows - $10,002 of proceeds from the sale of investments classified as
available-for-sale

Largest Investing Outflows - $245,002 in capital expenditures for property and equipment,
$1,264 spent on intangible assets

Largest Financing Inflows - $7,305 from stock options exercised, $742 in Excess tax benefit from
share-based payments


Largest Financing Outflows - $7,143 in payments on capital leases and other, $7,464 in common
stock repurchased from employees, $97,224 in dividends paid = $103,784 in net cash used for
financing activities for continuing operations

The Buckle Inc. (2015)

Largest Investing Inflows - $38,131 in proceeds from sales/maturities of investments, $108 in

other

Largest Investing Outflows - $45,454 in PP&E, $43,404 in purchases of investments

Largest Financing Inflows - $225 in excess tax benefits from stock option exercises, $70 in
proceeds from exercise of stock options

Largest Financing Outflows - $176,604 in dividends

Comparative Analysis

American Eagle reports a net income of $80,322, Buckle Inc. reports a net income of $162,564,
this does not always mean that a company’s operations are more profitable

Buckle reports gross profit of $507,332, net sales of $1,153,142  Gross Margin = .044

AE reports gross profit of $1,154,674, net revenue of $3,282,867  Gross Margin = .035
 American Eagle received its largest investing inflows from the sale of available for sale

assets, which amounted to $10,002. The largest investing outflows were $245,002 in property,

plant, and equipment, and $1,264 in intangible assets. Their largest financing inflows came

from $7,305 in stock options exercised. The largest financing outflows were $97,224 in

dividends paid out and approximately $7,164 for lease payments and $7,464 in stock bought

back from employees.

The Buckle Inc. gained $38,131 in proceeds from sales/maturities of investments. They

spent $45,454 on PP&E and $43,404 in purchases of investments. In terms of their financing,

they received $225 in excess tax benefits from stock option exercises and $70 in proceeds from

exercise of stock options. They also paid - $176,604 in dividends.

American Eagle’s net income was $80,322 while Buckle Inc. reported a net income of

$162,564. This alone does not guarantee that Buckle’s operations are more profitable. Gross

margin is more indicative of the profitability of a company. Buckle has a gross margin of 44%,

while AE has a gross margin of 35%.