Financial Reporting and Analysis Macy's and May Company.

Examining Annual Reports: In order for pecuniary analysts to make coronation recommendations, in that location atomic number 18 a number of factors to be considered. A adept reputation or a low stock equipment casualty is not an adequate to(predicate) indicator of a stocks value or a companys approaching financial success. Through an examination of a variety of financial ratios and in-depth financial analytic thinking, investors and analysts after part gather vicenary data to compare and contrast with other companies within a similar patience and from that information decipher how well managed a companys finances are. We have chosen to compare two retailers aim upon two key ratios and industry standards. These companies include Macys and the May leg Stores Company. Each company is recognized as a outfit retailer. We shall examine each companys profit allowance, present-day(prenominal) ratio and debt-to-equity ratio. From our compendium we hope to gather enough data that allows us to overstep off a thorough understanding of each companys current financial position and whether or not each would be a wise investment. Test Of Profitability: Profit coast Ratio Profit marge measures how expeditiously the company is beingness managed. It tells how many cents are left everyplace from every dollar mark of sales. The profit margin ratio measures the per centum of each sales dollar, on average, that represents profit (Libby, p. 713, 2004). Macys profit margin for 2004 was 7.

1%, the May surgical incision Stores Company had a ratio of 5.6%. MSNs money Central reports the i ndustry average for the last 12 months to be! 4%. some(prenominal) retail companies are showing impregnable profit margin ratios compared to industry. This means their net incomes to sales revenues are enough to spawn a profit as impertinent to a loss. A higher profit margin can give the companies a cushion during slower economic times. Test of liquidity: up-to-the-minute Ratio The current ratio relates... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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