Go to the latest annual reports, and use the financial information to update the numbers in...

Go to the latest annual reports, and use the financial information to update the numbers in the net profit margin management model and the asset turnover management model for Costco and Macy's. Have there been any significant changes in their financial performance? Why are the key financial ratios for these two retailers so different?

the net profit margin management model

the asset turnover management model

Solutions

Expert Solution

Answer :-about ratios based on both the model

a.) Asset turnover based model :- it is the ratio of sales revenue to average total assets. where asset turnover is high then this means that high sales which are based in assets of the business .

b.) Profit margin based model:- it is the net income divided by the sales revenue .this shows that how much we can earn profit from our sales

these both model help us to calculate return on business .

this return is used to compare both the firms based on return on equity basis

updation of net profit margin model and asset turnover model both are of same kind so, there is no significant changes in their financial performance

ekkarill92 answered 2 years ago

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