Financial Reporting and Analysis Macy's and May Company.

Examining Annual Reports: In order for monetary analysts to make investiture 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 seemly indicator of a stocks value or a companys emerging financial success. Through an examination of a variety of financial ratios and in-depth financial analytic thinking, investors and analysts after part gather three-figure data to compare and contrast with other companies within a similar industriousness and from that information decipher how well managed a companys finances are. We have chosen to compare two retailers setting upon two key ratios and industry standards. These companies include Macys and the May department Stores Company. Each company is recognized as a do retailer. We shall examine each companys profit allowance, original ratio and debt-to-equity ratio. From our epitome we hope to gather enough data that allows us to convey off a thorough understanding of each companys current financial position and whether or not each would be a wise investment. Test Of Profitability: Profit edge Ratio Profit brink measures how expeditiously the company is macrocosm managed. It tells how many cents are left everyplace from every vaulting horse 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 discussion section Stores Company had a ratio of 5.6%. MSNs money Central reports the industry average for the last 12 months to be 4%. twain retail companies are showing impre gnable profit margin ratios compared to indu! stry. This means their net incomes to sales revenues are enough to kick in a profit as impertinent to a loss. A higher profit margin can give the companies a cushion during slower economic times. Test of liquidity: watercourse Ratio The current ratio relates... If you want to get a full essay, order it on our website: OrderEssay.net

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