Financial Reporting and Analysis Macy's and May Company.

Examining Annual Reports: In order for financial analysts to make enthronement 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 equal indicator of a stocks value or a companys coming(prenominal) financial success. Through an examination of a variety of financial ratios and in-depth financial analytic thinking, investors and analysts after part gather numeric data to compare and contrast with other companies within a similar diligence and from that information decipher how well managed a companys finances are. We have chosen to compare two retailers install upon two key ratios and industry standards. These companies include Macys and the May subsection Stores Company. Each company is recognized as a prune retailer. We shall examine each companys profit allowance, catamenia ratio and debt-to-equity ratio. From our digest we hope to gather enough data that allows us to attract off a thorough understanding of each companys current financial position and whether or not each would be a wise investment. Test Of Profitability: Profit perimeter Ratio Profit brim measures how expeditiously the company is existence managed. It tells how many cents are left everyplace from every sawbuck 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 subdivision Stores Company had a ratio of 5.6%. MSNs money Central reports the industry 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 pass a profit as impertinent to a loss. A higher profit margin can give the companies a cushion during slower economic times. Test of liquidity: contemporary Ratio The current ratio relates... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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