Macy's Financial Analysis
Final Case Study
An Analysis of Macy’s Incorporated
Table of Contents 2
Abstract 3
Financial Analysis using ratios & opinion 4
Macy’s Future Outlook 8
Income Statements, Balance Sheets, Income Statements 9
References 16
Appendices 17
Abstract
This paper is the final case study of Macy’s Incorporated and it is designed to provide a financial analysis of the company. Financial data will be spread over a three year time period using real numbers from financial statements that will be used to analyze Macy’s performance. Analysis will include stock data, financial ratios, common size analysis, cost of capital, and various calculations …show more content…
Macy’s is known as the Great American Department Store (Macy’s) and it operates approximately 850 stores and 161,000 full time employees. During the recession, many department stores closed and downsized, however Macy’s survived the recession with annuals sales of $23.5 billion as reported in the 2009 Annual Report. Macy’s also reported improvements in cash flow and enhanced gross margins even after paying off $966 million in debt in fiscal 2009 subsequently ending with $1.7 billion in cash which is $300 million more than 2008. During fiscal year 2009, Macy’s had 420 million shares of Common Stock outstanding with stock price of $16.61 (Macy’s Annual …show more content…
In other words, can the company meet its financial obligations? Macy’s current ratio is 1.3 compared to Dillard’s 2.27. The ratio means that the company has $1.00 in current assets to cover $1.00 in current liabilities. Note that Macy’s assets are more than its liabilities which is good however the ratio is well below Dillard’s. When it comes to lending, Bankers will choose the company with the highest current ratio because the firm is able to cover its current liabilities and in this analysis case, Dillards will have cash left over. Another item to point out is that current ratio does not take into account receivables and pay
An Analysis of Macy’s Incorporated
Table of Contents 2
Abstract 3
Financial Analysis using ratios & opinion 4
Macy’s Future Outlook 8
Income Statements, Balance Sheets, Income Statements 9
References 16
Appendices 17
Abstract
This paper is the final case study of Macy’s Incorporated and it is designed to provide a financial analysis of the company. Financial data will be spread over a three year time period using real numbers from financial statements that will be used to analyze Macy’s performance. Analysis will include stock data, financial ratios, common size analysis, cost of capital, and various calculations …show more content…
Macy’s is known as the Great American Department Store (Macy’s) and it operates approximately 850 stores and 161,000 full time employees. During the recession, many department stores closed and downsized, however Macy’s survived the recession with annuals sales of $23.5 billion as reported in the 2009 Annual Report. Macy’s also reported improvements in cash flow and enhanced gross margins even after paying off $966 million in debt in fiscal 2009 subsequently ending with $1.7 billion in cash which is $300 million more than 2008. During fiscal year 2009, Macy’s had 420 million shares of Common Stock outstanding with stock price of $16.61 (Macy’s Annual …show more content…
In other words, can the company meet its financial obligations? Macy’s current ratio is 1.3 compared to Dillard’s 2.27. The ratio means that the company has $1.00 in current assets to cover $1.00 in current liabilities. Note that Macy’s assets are more than its liabilities which is good however the ratio is well below Dillard’s. When it comes to lending, Bankers will choose the company with the highest current ratio because the firm is able to cover its current liabilities and in this analysis case, Dillards will have cash left over. Another item to point out is that current ratio does not take into account receivables and pay