A Compare And Contrast The Financial Analysis Of Macy's

As for the Profit Margin, we know that the profit margin ratio, also called the return on sales ratio or gross profit ratio, is a profitability ratio that measures the amount of net income earned with each dollar of sales generated by comparing the net income and net sales of a company.we can see that Macy’s outperforms Wal-mart in the financial metric. Although both companies have the same tax rate, but Macy’s has a better profit margin because Macy’s has lower interest expense which is almost one fifth of interest expense of Wal-mart. On the other hand wal-mart total assets is almost nine times of that of Macy’s which makes the profit margin less for wal-mart. Walmart net income is sixteen times more than net income of Macy’s but as we can
see Macy’s profit margin is higher than Walmart. Pricing-wise Macy is in better condition and this can be because of many different items such as number of days they have great sales, the incremental fixed and variable cost they have per order, the price they charge for each sale and of course the size and number of the sale, the frequency of the sale as well. Macy can analyze the cost structure of using supply chain,the strategy then can benefit from for being more efficient and eliminate the costs, maintain their stand in the market and compete, and attract customers and keep them as loyal customers who go back again and make the profit for Macy’s and in general these all help Macy’s increase revenues and/or cut back costs. (Information, Pricing)