In: Accounting
Risk Assesment Project 2.Fill in industry comparisons for Macy in the Excel Spreadsheet. Compute missing financial
statement ratios for Macy and describe Macy’s profitability, efficiency, liquidity.
Profitability. |
In case of profitability Macy's Inc had outperformed the industrial standards. When the industrial average ROE is just 10.10%, the ROE of Macy's is 18.30%, which indicates that investors are getting high return compared to industry. |
Efficiency. |
The company is less efficient with regards to asset turnover and receivable turnover. It is highly disappointing that Macy's efficiency is almost half the industrial standard. |
Liquidity. |
Though Current ratio seems to be lower when compared with industry, the quick ratio and cash ratio are higher, which depicts that the company is maintain sufficient liquidity with them. |