You are a financial analyst. Based on your analysis of Macy’s financial statements, provide a report to guide investors whether Macy’s is a buy (keep) or sell stock. Your report should include the following
a. An interpretation of trends illustrated by supportive ratios, horizontal and vertical analysis and focus on the main ratios that “tell the story”. (a minimum of one page-not to exceed two pages, single space, 12 font size).
i. horizontal and vertical analysis
ii. Liquidity analysis
iii. Profitability analysis
iv. Solvency analysis
b. Your informed recommendation (buy or sell) about Macy’s with justifications. What is your general impression about Macy’s ? Support your conclusion (1- paragraph)

  
   
 
 
 

Macy's Inc (NYS: M) As Reported Annual Balance Sheet Report Date Cash & cash equivalents Receivables Merchandise inventories Prepaid expenses & other current asset Total current accet Land Buildings on owned land Buildings on leased land & leasehold improve Fixtures & equipment Leased properties under capitalized leases Property & equipment, at cost Less accumulated depreciation & amortization Property & equipment, not Goodw Other intangible assets, not other assets Total accets Senior debentures Senior notes Capital lease & current portion of other long-term obligat Short-tem debt Merchandise accounts payable Accounts payable Gift cards & customer award certificates Accrued wages & vacation Cument portion of post employment & postretirement be Taxes other than income taxes Severance & relocation Lease related liabilities Cument portion of workers' compensation & general labi Restructuring accruals, Induding severance Allowance for future sales returns Accrued interest Deferred real estate gains Other accounts payable & accrued liablites Accounts payable & accrued labiles Income taxes Deferred Income taxes Total current lab Senior notes Senior debentures Amortizing debentures Un amortized debt issue cost Un amortized debt discount Promlum on acquired debt Capital lease & other long-term obligations Long-term debt Deferred Income taxes Other Tables Total Liabilities Common stock Additional paidin capital Accumulated equity (det) Treasury stock Accumulated other comprehensive Income (los) Total Macy's, Inc. shareholders equity (deficit) Noncontrolling interest Total shareholdere equity Y3 1,455,000 363,000 5,178,000 22.000 22,000 1.590,000 735,000 967,000 229,000 194,000 157,000 189,000 108.000 448,000 7,444,000 1,494,000 4.106.000 1,444.000 1,545,000 1,672,000 4,204,000 4,541,000 4,910,000 34,000 34,000 34,000 11,282,000 11,873,000 12,935.000 4.610.000 4,856.000 5,319,000 6,672.000 7,017.000 7.616.000 3,897,000 3,897,000 3,897,000 488.000 880,000 514.000 897,000 498.000 813.000 18,861,000 20,678,000 300.000 18,381,000 93,000 90,000 70,000 65,000 270,000 3,167,000 296.000 Y2 1,297,000 522.000 5,861,000 1,122,000 1,662.000 1,109,000 558,000 5,399,000 5,506,000 408,000 479,000 7,828,000 7,862,000 1,541,000 1,629,000 4.212,000 4,690,000 3.000 676,000 7.174.000 1.456.000 9,000 309.000 1,423,000 754,000 970,000 215,000 208.000 166,000 166,000 174,000 119,000 - 96,000 74.000 340,000 281.000 3,563,000 352,000 Y1 59.000 577.000 6,000 642,000 1.526.000 814,000 920.000 (896,000) 4,323,000 (724,000) 5,673,000 (12.000) (1,000) 6,881,000 4,322,000 153,000 257,000 184,000 123,000 165.000 127,000 6,076,000 6,847,000 6,728,000 2,021,000 4,000,000 4,000,000 3,769,000 2,437,000 2,845,000 16.000 22.000 26,000 (25.000) (29,000) (32.000) (13,000) (16,000) (16,000) 67,000 121,000 143,000 26,000 27.000 29,000 88.000 112,000 6,562,000 6,995.000 1.443.000 1,477,000 1,877,000 2.123.000 13,720,000 16,620,000 16,323,000 390,000 3,333,000 227,000 .. 3,000 3,000 617,000 6,088,000 6.334,000 621,000 1,489,000 1,665,000 (1.043,000) 4,250,000 3,000 4,263,000 Horizontal Ana y cic (Y3/Y2) 12.2% -30.5% 4.1% 9.8% -2.4% 3.0% -2.5% 6.5% -7.4% 0.0% 5.0% 4.1% 4.9% 0.0% -2.0% 8.2% -2.4% #VALUE! #VALUE! 144.4% -92.9% 11.7% -2.5% -0.3% 6.5% 6.7% -5.4% #VALUE! 8.6% -9.2% #VALUE! 4.3% -5.4% 80.9% -3.9% -11.1% -15.9% #VALUE! -10.1% 49.5% 54.7% -27.3% -13.8% -18.8% 44.6% 3.7% -10.7% -22.2% -11.5% -11.6% 0.0% 9.6% 17.8% -2.2% -19.2% 31.2% 1100.0% 31.0% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Vertical Analysis YS 7.5% 1.9% 26.7% 2.3% 38.4% 7.7% 21.2% 7.5% 21.7% 0.2% 58.2% 23.8% 34.4% 20.1% 2.5% 4.5% 100.0% 0.1% 0.1% 8.2% 3.8% 5.0% 1.2% 1.0% 0.8% #VALUE! 1.0% 0.6% 0.5% 0.5% 0.4% 0.3% 1.4% 16.3% 1.5% #VALUE! 26.2% 10.4% 19.4% 0.1% -0.1% -0.1% 0.3% 0.1% 30.2% 5.8% 8.6% 70.8% 0.0% 3.5% 37.0% 7.5% -3.7% 29.3% -0.1% 29.2% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 55 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Vertical Analysis Y2 6.5% 2.6% 27.2% 2.1% 38,4% 7.8% 21.2% 7.8% 22.9% 0.2% 50.8% 24.5% 35.3% 19.6% 2.5% 4.1% 100.0% 1.5% #VALUE! 0.0% 1.6% 7.2% 3.8% 4.9% 1.1% 1.0% 0.8% 0.8% 0.9% 0.6% #VALUE! 0.5% 0.4% 1.7% 1.4% 17.9% 1.8% #VALUE! 28.4% 20.2% 12.3% 0.1% -0.1% -0.1% 0.6% 0.1% 33,1% 7.3% 9.5% 78.2% 0.0% 3.1% 30.7% 7.5% 4.5% 21.8% 0.0% 21.8% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 5 6 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 6.6 6.6