analyze Macy’s Inc.
Required Information Sources:
· SEC’s EDGAR database at
http://www.sec.gov/edgar.shtml
to get the 10-K financial data for the company. Do NOT use any other source. The link above will take you to the database where there is a tutorial on how to use it.
·
Key Business Ratios
database in TAMUT’s library electronic resources has industry ratios. Select SIC code 5311. Use the ‘median’ ratio for the industry ratio in your report.
- Mergent Online electronic database at TAMUT - Enter the company name in the search box and click ‘go’. Click on the blue tabs near the top of the page to get information on executives, company financials, competitors, and industry reports.
Format for Reports:
Your project should be 10 - 12 pages using a word-processor, double-spacing, Times New Roman 12-point font, and 1-inch margins. Submit the paper using Microsoft Word or Open Source via the assignment tab in Blackboard. Make sure your file is attached.
Title Page -
Include the title of the paper, your name, Texas A&M University-Texarkana, and the date. Center this information in the upper-middle of the page. In the lower-middle of the page include submitted to Dr. Wendy Achilles and the course name and number.
Introduction -
Include a one paragraph introduction to the paper.
Part 1 – Company Profile and Analyses of the Industry - The first section (no more than 4 pages) must contain ALL of the following subsections:
- Description of the company
- Brief company history
- Description of the industry (competitors, industry outlook, etc.) –
Use Mergent Online electronic database at TAMUT for competitors. Search for Macy’s Inc. and click on the competitors tab. Use sales revenue to find where Macy’s ranks in the industry. Do not use any other industry ranking.
- Business segment information (one page) from the 10-k.
Segment reporting is required for publicly-held entities. In your paper you need to identify which segments your company is reporting on and give some information on them. This can include financial data for the segments.
Part 2 – Analysis of Historical Financial Data
Perform time-series and cross-sectional analyses of your firm for each of the measures listed below. Time-series analysis compares the same measure for the same company or industry over a period of time (4 years minimum for this project). Cross-sectional analysis refers to a comparison of a company with the industry using the same measure.
The ‘current ratio’ from this report is shown below. Use the ‘median’ ratio for the industry ratio in your report. If the current ratios you pull up do not match those below, check the SIC code on the report and the group by classification.
Industry Quartiles
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2014
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2015
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2016
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2017
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Solvency
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Upper
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Median
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Lower
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Upper
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Median
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Lower
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Upper
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Median
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Lower
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Upper
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Median
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Lower
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Current Ratio
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2.5
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2.1
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2.4
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2.2
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Calculate the ratios for your paper as given in the assignment. These calculations are the ones used by D&B Key Business Ratios and you want the calculations to be the same. Normally you would use average inventory, accounts receivable etc., but that would not be consistent with the industry ratios you are comparing the company with. For information on the ratios, click on the 'help guide' on the upper right of the Key Business Ratios webpage. Next, select download the 'ratio guide'.
Present the ratios for your paper in the following format:
Ratio – e.g. Current ratio
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2014
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2015
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2016
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2017
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Company – put your company name here
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Calculate from Edgar Financials
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Industry
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From Key Business Ratios
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If you use the % sign is the title of the ratio like the example below, then express 98% as 98 in the table. This is the way the ratios are show in the Key Business Ratios database. You will also have to show your company’s ratios this way for it to be comparable.
Total Liabilities/Net Worth %
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|
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Company
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Industry
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98.00
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109.50
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110.10
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If you do not use the percent sign in the table, then express the percentages as .98 or 98%. Be sure to change the industry key business ratios to match.
Total Liabilities/Net Worth (no % sign here)
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Company
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Industry
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98%
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109.50%
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110.10%
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Include the following ratios in your analysis:
o Curent ratio (total curent assets / total curent liabilities)
o Total Liabilities/Net Worth % (total liabilities / total equity)
o Assets / Sales %
o Days in Inventory 365/(Sales/inventory)
o Return on Assets % (net profit for year / total assets)
o Return on Net Worth % (net profit for year / equity)
Directly below each ratio discuss:
1) what the ratio measures,
2) how the measure has changed over time for the same firm,
3) how the firm’s measure compares with the industry and
4) what these results indicate about the company.
Do not list all of the ratios and then begin the discussion.
Conclusion -
The conclusion should be a brief one paragraph summary of your findings.
References –
Your paper should have four sources in addition to Key Business Ratios, the SEC, and Mergent. Do not cite a textbook.
Sources of information used in the report should be identified with an in-text citation (indicate author and date) and a complete Reference List. Use the APA format. See the APA videos posted under the assignment tab in Blackboard. Instructions and examples are also available at
https://owl.english.purdue.edu/
.