What Is The Difference Between Macy And Dillard's

From the trend analysis we preformed for both Macy’s and Dillard’s we can gather that both companies have managed to improve their return on assets, return on equity, and price to earnings within the 2014-2016 time frame. Although, both companies may have developed in those areas they did seem to differ in their progress on their inventory turnovers and accounts receivable turnovers. Macy’s struggled from 2014 to 2016, with inventory turnover and accounts receivable turnover dropping a considerable amount each year. In comparison, Dillard’s inventory turnover increased over time. Dillard’s accounts receivable turnover fluctuated from 2014 to 2015 dropping by a minor amount, but it once again advanced in 2016 over both the 2014 and 2015 amounts.
After studying the trends of the two companies one can reason that both companies are more than likely going to do well on their return on asset, return on equity, and price to earnings in the upcoming financial years. One can also infer that Macy’s needs to improve on their accounts receivable turnover and inventory turnover since it has dropped each year studied. Lastly, Dillard’s should continue to perform better in the future on accounts receivable turnover and inventory turnover since the trend analysis shows minor improvements. Although not everything can be assumed from the trend analysis, it can definitely help one understand how these calculations may change over time for both companies, and which areas each needs to improve on to help increase financial profits.