Compute the following ratios based on the financial statements for two consecutive years found in the SEC 10-K of the company you selected in the Week 1 Assignment: o Current Ratio o Asset Ratio o...

NEIMAN MARCUS RATIO ANALYSIS
Table of Contents
Table of Contents    1
Introduction    2
Computation of Ratios    2
Comparison with Competitor    2
Trend Analysis    4
Conclusion    4
References    6
Introduction
Nieman Marcus which recorded revenue of roughly $4.9 billion in revenues for fiscal year 2018 and of this closely 35% were online transactions, is one of the largest omni-channel extravagance fashion retailers globally (Neiman Marcus, 2019).
Computation of Ratios
As per Fleisher & Bensoussan, (2015) Ratio analysis is a way to measure the business performance through calculation of ratios taken from the financial statements of the company. The same can be used to compare the past performance estimate the future and even compare with the industry benchmarks. These comparisons will provide details into company’s financial and operational performance.
Table 1: Source; Neiman Marcus, (2019), Nordstrom, (2019)
Comparison with Competitor
Nordstrom is a close competitor of Nieman Marcus. It is functional since 1901 in Retail, Credit and Corporate segment. It recorded a total revenue of $15137 million in 2018 (Nordstrom, 2019).
The liquidity position of business is assed using current and quick ratio (Robinson, Henry, Pirie, & Broihahn, 2015). The current ratio for the last 2 years is in the ideal position of over 1 for both Nieman Marcus and Nordstrom. This depicts a sound and healthy liquid position on both the firms.
The firm’s financial stability is asses using the debt equity ratio. A higher ratio depicts that Nieman Marcus has higher debts as compared to owner equity. For Nieman Marcus this ratio has dropped significant yet is still in...