Nordstrom, Inc. has select stores across Canada that compete against Hudson’s Bay Company and other higher-end retailers. Selected hypothetical financial data (in millions) for the two companies’ global operations are presented here. 

Instructions 

a. For each company, calculate the following ratios: 

1. Current ratio  

2. Receivables turnover 

3. Inventory turnover

4. Operating cycle

5. Debt to total assets  

6. Interest coverage

7. Gross profit margin 

8. Profit margin

9. Asset turnover 

10. Return on assets 

11. Return on equity  

b. Compare the liquidity, solvency, and profitability of the two companies. 

If the entities presented other comprehensive loss, should it be factored into your analysis above?

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Statement of Comprehensive Income Total revenue Cost of sales Gross profit Operating expenses Profit (loss) from operations Interest expense Other non-operating expense Profit (loss) before income tax Income tax expense (benefit) Profit (loss) for the year Balance Sheet Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Shareholders' equity Total liabilities and shareholders' equity Additional information: Average accounts receivable Average inventories Average total assets Average total shareholders' equity Hudson's Bay (C$) Nordstrom (US$) Income Statement Data for the Year $14,349 8,514 5,835 6,481 (646) 228 75 $ 4,302 7,932 $12,234 $ 3,500 6,327 (949) (368) $ (581) Balance Sheet data (Year End) 9,827 2,407 $12,234 $15,478 9,890 $ 386 3,371.5 12,219 2,408.5 5,588 4,662 $ 926 136 790 353 437 $3,503 4,612 $ 8,115. $3,289 3,849 7,138 977 $ 8,115 $ 172 1,961.51 7,986.5 923.5