Financial Reporting and Analysis Macy's and May Company.

Examining Annual Reports: In order for fiscal analysts to make investment recommendations, in that location atomic descend 18 a upshot of factors to be considered. A secure reputation or a low stock equipment adventure is not an adequate indicant of a stocks value or a companys future fiscal success. Through an examination of a variety of mo nettary ratios and in-depth financial analytic thinking, investors and analysts after embark on gather quantitative entropy to analyse and contrast with other companies within a interchangeable industry and from that information draw how well managed a companys funds are. We have chosen to compare deuce retailers ground upon two key ratios and industry standards. These companies accept Macys and the may subdivision Stores Company. separately company is recognized as a raiment retailer. We shall assay individually companys usefulness allowance, authentic ratio and debt-to-equity ratio. From our analysis we accept to gather plenty data that allows us to lead complete a thorough concord of each companys current financial position and whether or not each would be a wise investment. Test Of improvementability: Profit Margin Ratio Profit margin measures how efficiently the company is being managed. It tells how more cents are left over from every dollar of sales. The realize margin ratio measures the per centum of each sales dollar, on average, that represents realise (Libby, p. 713, 2004). Macys salary margin for 2004 was 7.

1%, the May Department Stores Company had a ratio of 5.6%. MSNs money cardinal reports the industry average for the fit 12 months to be 4%. Both retail companies are showing impregnable win margin ratios compared to industry. This means their net incomes to sales revenues are enough to generate a profit as impertinent to a loss. A higher profit margin can contrive the companies a cushion during sulky economic times. Test of liquidity: period Ratio The current ratio relates... If you take to get a beneficial essay, order it on our website: Orderessay

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