Financial Statement Analysis Project

MACYS VS NORSTROM

To find the financial statements, look in the index to the report. Financial Statements are usually in "Item 8." Item 8 starts with the Auditor's report, (there are 2 auditor reports. The financial statements immediately follow the auditor reports.

QUESTIONS:

A. Executive Summary of ndings (one paragraph): The paragraph includes, a) a statement of which companies your chose, b) a couple sentences introducing your companies i.e., what industry are they in, a bit about what their business is and, c) A statement of which rm you chose as the better investment. B. A chart with the required nancial ratios. Use the format provided below: Ratio Your Firm #1 Name Your Firm #2 Name Ratio denition Working Capital .XXX .XXX Example: The current ratio shows the dollars of current assets a rm has they could convert to cash within a year to cover current liabilities (debts due within a year) C urrent Ratio Etc. Etc. Quick Ratio Accounts receivable turnover Average days to collect receivables Inventory Turnover Average days to sell inventory Debt to Assets Debt to Equity No. times Interest Earned Plant Assets to Longterm Liabilities Net Margin Asset Turnover ROI ROE Earnings per share (nd in U S) Book Value per share Price Earnings Ratio https :Hnanccyahoocomflookupf Dividend Yield https :Hnanccyahoocomflookupf C. This is where you provide the evidence that led to your choice of rm as a better investment option. Look over your ratios and note where they are different. Which company is stronger? Generally, one company won't be stronger in all areas, so you might choose the rm that is stronger in more areas, or you might choose the rm that you feel is stronger in the most important areas. There is no right answer here, just provide evidence to support your conclusion and tell me why you made your choice. No more than one page. Be professional, precise, and complete in your presentation