Financial Analysis Of Retail Essay

FINANCIAL ANALYSIS of RETAIL

  1. Intro.
  2. EXECUTIVE SUMMARY……………………………………………………………2
  3. RETAIL INDUSTRY OVERVIEW……………………………………………………4
  4. COMPANIES OVERVIEW: MACY’S, NORDSTROM AND J.C.PENNEY………....6
  5. CURRENT RATIO ANALYSIS………………………………………………………13
  6. QUICK RATIO ANALYSIS…………………………………………………………..14
  7. INVENTORY TURNOVER…………………………………………………….. …….15
  8. DAYS TO SELL INVENTORY……………………………………………………… 16
  9. RECEIVABLES TURNOVER…………………………………………………………17
  10. AVERAGE COLLECTION PERIOD………………………………………………18
10. FIXED ASSET AND TOTAL ASSET TURNOVER…………………………………19
  11. NET INCOME ANALYSIS……………………………………………………………21
  12. ROA………………………………………………………………………………….22
  13. ROE………………………………………………………………………………….23
  14. ROI…………………………………………………………………………………..24
  15. TIE RATIO…………………………………………………………………………..27
  16. DEBT TO ASSET RATIO……………………………………………………………28
  17. Z SCORE…………………………………………………………………………….29
  18. WACC ANALYSIS…………………………………………………………………30
  19. SELF-SUSTAINABLE GROWTH…………………………………………………..31
  20. CONCLUSION………………………………………………………………………32
  21. DATABASES REVIEW………………………………………………………………33
  22. APPENDIX……………………………………………………………………………34

Executive Summary
This summary concludes the findings based on the comparative financial statements of Macy’s, Nordstrom and J.C. Penney.  
PROFITABILITY:
J.C. Penney and Nordstrom ROA and ROE were trending well; they were very above to the industry average until 2007. J.C. Penny’s and Nordstrom’s had more of a decline in 2008.   Macy’s return on assets was tie to industry average; however Macy’s suffered significant loss in assets by 2009, which reflected ROA and ROE significantly. J.C. Penny’s and Nordstrom were doing fairly well compared to the industry. After 2007 JcPenny’s and Macy dropped where Nordstrom’s actually increased.
LIQUIDITY AND ACTIVITY:
The Current Ratio of M and J.C. Penney are above industries average for the five years. Macy’s current ratio had been decreasing and...