Interpreting Financial Results
Interpreting financial results in a corporation is very important when determine the profit and loss of a company. Calculating the major categories of such as liquidity ratios, debt ratio, profitability ratio, and effeciency ratio to complete a full analysis. In this paper we will compare Macys the financial ratios with each of the preceding three years 2012, 2013, and 2014. The paper will as discuss the calculated financial ratios against the industry benchmarks for Macys.
The liquidity ratios position in the company had its ups and down in the years of 2012, 2013, and 2014. In 2013, the current assets for current liability slightly decreased. The debt ratio seems to be stable for Macys throughout the three years with only a rise in debt in 2014. The profitability ratio increased over the three years from 2012 until 2013 slightly by 9-10%. According to the efficiency ratio Macys has been profitable as the years go on.
In conclusion, Macy’s financial statements show how profitable the company is fro, year to year. The financial analysis allows for the company
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