# Swot Analysis Of Macy's

1313 Words 6 Pages
Register to read the introduction… All amounts are in millions of dollars.

| January 30,2010 | January 29,2011 | Amount change | Percent Change | Assets | | | | | Cash and cash equivalents | 1686 | 1464 | -222 | -13.17% | Receivables | 358 | 392 | 34 | 9.50% | Merchandise inventories | 4615 | 4758 | 143 | 3.10% | Supplies and prepaid expenses | 223 | 285 | 62 | 27.80% | Total current assets | 6882 | 6899 | 17 | 0.25% | Property and equipment | 9507 | 8813 | -694 | -7.30% | Goodwill | 3743 | 3743 | 0 | 0.00% | Other intangible assets | 678 | 637 | -41 | -6.05% | Other Assets | 490 | 539 | 49 | 10.00% | Total Assets | 21300 | 20631 | -669 | -3.14%
These 4 divisions are aggregated into one reporting segment. Assets are \$20,631,000,000 and the net income is \$847,000,000, which results in a return on investment of 0.0411(calculated as net income/assets). Residual Income is calculated as “Net income- (Average of Assets x Rate of return)”. The average of total assets from 2010 and 2011 is \$20,965,500,000. This is a loss of \$1,249,550,000. (Assuming a rate of return of 10%)
The contribution margin is calculated as Net income + Fixed costs. Assuming 70% of expenses are fixed costs, the value of fixed costs is 70% of all the operating expenses and it equals to \$16,176,300,000. The contribution margin is calculated as 847,000,000 + 16,176,300,000, which is equal to \$17,024,000,000. The contribution margin ratio is calculated as “contribution margin/ net sales” which equals to

## Related Documents

• ###### Compare And Contrast Macy's And Nordstrom

Financial Analysis of Macy’s Inc. and Nordstrom Macy’s Inc. has established itself as a strong player in the retail industry, with over 850 Macy’s and Bloomingdale’s stores in 45 states. Macy’s competes against retail giants like Nordstrom, Kohl’s, JC penny and Saks Fifth Avenue for market share in the increasingly competitive department store industry. This financial report will choose Nordstrom as the major competitor, and serves as the comparison company. The annual report and 10-K filings…

Words: 4023 - Pages: 17
• ###### Macy's Case Study

Macy’s: Executive Summary Macy’s, Inc. Macy’s, Inc. is known as the one of the leading retail corporations worldwide. It offers its customers a wide range of products including clothing, footwear, jewelry, beauty products, and even home décor. Macy’s has opened more than 800 stores across the U.S. and reported fiscal year (FY) 2009 sales of \$23.5 billion. Although Macy’s is a prominent retailer today, their success had to start somewhere. In this summary we will take a glance at Macy’s history…

Words: 1598 - Pages: 7
• ###### SWOT Analysis: Macy's Inc.

Yuriko Martel Macy’s Inc. is a well-known company and #1 department store chain. It is one of the nation’s premier Omni channel retailers, with fiscal 2013 sales of \$27.9 billion. With about 840 stores in 45 states, the district the Columbia, Guam and Puerto Rico. Macy’s is different from other retailers, because Macy’s embraces customers and strives them to provide quality experience transcending ordinary shopping. Macy’s provide to customers the most unique and interesting fashion merchandise…

Words: 964 - Pages: 4
• ###### Macy's Mac Case Analysis

External Analysis for Macy’s Departmental Stores Inc. Introduction Macy’s Department Stores Incorporated or Macy’s is an American based retail chain of departmental stores. It is currently operating under two brand names the Macy’s and Bloomingdale in over forty five states of America. The company specializes in the range of products including jewelry, furniture, house hold items, footwear, clothing and other related items.It also offers online shipping services…

Words: 2940 - Pages: 12
• ###### Macy's Vs Nordstrom Case Study

Financial Statement Analysis: Macy’s Inc. vs. Nordstrom, Inc. MACY’S, INC. a. Macy’s, Inc. is a retail organization operating retail stores and Internet websites under two brands (Macy’s and Bloomingdale’s) that sell a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. Macy's’ competitors include other middle priced-ranged department stores including Nordstrom, Bed Bath & Beyond, Belk, Bon Ton, Burlington…

Words: 2847 - Pages: 12
• ###### Macy's Department Store Case Study

Macy’s Department Store Reposition Case Study By Tina Parker In Partial Fulfillment of Course Requirements for BUS 530A Marketing Management California Baptist University Dr. Natalie C. Winter May 21, 2013 Executive Summary The case study is Macy’s Department Store Repositioning. The key problem is that the traditional department stores sales and profits are declining. There are specialty stores, discount stores, and online stores that offer similar products at a fraction of…

Words: 2414 - Pages: 10
• ###### Compare And Contrast Jcpenney And Macy's

JCPenney: Every Day Low Prices Versus Macy’s: Differentiated and Localized 11/29/12 Executive Summary The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing…

Words: 5169 - Pages: 21
• ###### Value Chain Analysis Of J. C. Penney's Corporations

products on their website in order to compete in this market. There are many online retailers out there that are making a strong push in the market with very similar product lines that J.C. Penney offers. Such players include Woolworths, Kohl’s Inc., Macy’s Inc., and Wal-Mart. The products include clothing, footwear, beauty products, electronics, and jewelry. J.C. Penney is a powerful buyer with bargaining power. There are many wholesale suppliers. This creates price competition causing the price…

Words: 1381 - Pages: 6
• ###### Macy's Case Study

Macy’s, Inc. is known as the Great American Department Store was established in 1858 and now has 810 stores operating in the United States, coast-to-coast. Macy’s stores nationwide are grouped into 69 geographic districts that average ten to twelve stores each. Most stores are located at urban or suburban areas. As of January 30, 2010, the Company’s operations were conducted through four retail operating divisions – Macy’s, macys.com, Bloomingdale’s, and bloomingdales.com. The Company is a retail…

Words: 2686 - Pages: 11
• ###### Case Study Sears

online product selection, among other improvements. Based on these developments and the improving economic conditions, the projected target price for Sears is \$77.10, based on the price/earnings ratio as a valuation model. After examining key financial data, it can be concluded that Sears’ sales ratio is expected to decrease by 2.61%, its cost of revenue will increase by 0.3%, and the gross margin percentage is expected to increase to 27.5% in the future. Also, the depreciation expense is expected…

Words: 7509 - Pages: 31