Financial Reporting and Analysis Macy's and May Company.

Examining Annual Reports: In order for monetary analysts to make enthronisation 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 to(predicate) indicator of a stocks value or a companys future tense 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 effort and from that information decipher how well managed a companys finances are. We have chosen to compare two retailers cast anchor upon two key ratios and industry standards. These companies include Macys and the May surgical incision Stores Company. Each company is recognized as a coif retailer. We shall examine each companys profit allowance, circulating(prenominal) ratio and debt-to-equity ratio. From our abbreviation we hope to gather enough data that allows us to pencil lead off a thorough understanding of each companys current financial position and whether or not each would be a wise investment. Test Of Profitability: Profit gross profit allowance account Ratio Profit margin measures how expeditiously the company is creation managed. It tells how many cents are left everyplace from every dollar sign 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 incision Stores Company had a ratio of 5.6%. MSNs money Central reports the industry average for the last 12 months to be 4%. both retail companies are showing impregnable profit margin ratios compared to industry. This means their net incomes to sales revenues are enough to bear a profit as impertinent to a loss. A higher profit margin can give the companies a cushion during slower economic tim es. Test of liquidity: reliable Ratio T! he current ratio relates... If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper