Macy's, Inc. Vs. Express: Financial Ratio Analysis

805 Words4 Pages
Eric Allen 6/16/2015 FIN 3400 Professor Rusell MACY’s, Inc. vs Express, Inc. The two stores I decided to compare for my financial ratio analysis was Macys, Inc. and Express, Inc. These are both indeed clothing stores however they entail very different aspects about one another. Express consists of over 600 stores in the United States and renders around $1.8 billion in sales on an annual basis. Macys on the other hand is known on a more international level with 789 department stores and also named the 16th largest retail store in 2012. Let’s begin with comparing each company’s ability to pay short-term obligations like debts and payables with its short-term assets which would be cash, inventories and receivables. This is better known as the current or liquid ratio. Totaling for the year of 2014, Express, Inc. had total current assets equivalent to $583,461 and total current liabilities equaling $299,207 giving Express, Inc. an awesome 195% current ratio. Macys, Inc. for the year of 2014 had total current assets of 8,688,000 and total current liabilities of $5,726,000 leaving their current ratio at 152%. This tells us that both companies are more than…show more content…
Express has a slight decline of 2% since the year 2012. Macys however has kept a steady 40% since 2012. This informs us that Express has had a decreasing retain of each dollar of sales while Macys has not increased but maintained their direct cost of goods and services sold. This same trend has taken place with the profit margin of both companies since the year of 2012. Express has a slower decline of 1% but a decline nonetheless beginning at 7% in 2012 ending at 5% in 2014. Macys has again held the same profit margin of 5% since 2012 which lets us know that Macys isn’t bigger for no reason. They possess more control over their costs making them overall more profitable than their

More about Macy's, Inc. Vs. Express: Financial Ratio Analysis

Open Document