Swot Analysis Of Macy's

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| 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%
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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

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