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- Although WRC's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. To add to this, WRC has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
- 41.20% is the gross profit margin for WARNACO GROUP INC which we consider to be strong. Regardless of WRC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.70% trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 78.4% when compared to the same quarter one year ago, falling from $45.50 million to $9.82 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, WARNACO GROUP INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.