question archive You are a management consultant and was commissioned by Macy’s Department Store to review its profitability for the past 3-years
You are a management consultant and was commissioned by Macy’s Department Store to review its profitability for the past 3-years
Subject:AccountingPrice: Bought3
You are a management consultant and was commissioned by Macy’s Department Store to review its profitability for the past 3-years. You are tasked with reviewing Macy’s net profit margin for FY 2019, 2018, and 2017. Macy’s management wants recommendations to improve its profitability. Below are the financial statements for Macy’s Department Store.
FY 2019 View Filing Data (sec.gov)
FY 2018 View Filing Data (sec.gov)
FY 2017 View Filing Data (sec.gov)
Please calculate the Net Profit Margin for the 3-years (use the information in the FY 2019 Income Statement to calculate the 3-years). Please show your calculations for full score. Remember the net profit margin is expressed as a %.
FY 2019
Net Profit
Net Revenue
Net Profit Margin
FY 2018
Net Profit
Net Revenue
Net Profit Margin
FY 2017
Net Profit
Net Revenue
Net Profit Margin
Please explain to Macy’s management the information communicated by the Net Profit Margin?
Please explain to Macy’s management the changes in the net profit margin from FY 2017 to FY 2018, and from FY 2018 to FY 2019. Should the management be concerned with the changing trends between the fiscal years? Please explain.
Page 1 of 3
Please provide two (2) recommendations for improving the FY 2019 net profit margin.
Continuing from 1 above:
Please calculate Macy’s Total Asset Turnover for FY 2019, 2018, and 2017. Please show your calculations for full score. (Remember, the ratios are expressed in “times”.
FY 2019
Net Revenue
Avg. Total Assets
Total Asset Turnover
FY 2018
Net Revenue
Avg. Total Assets
Total Asset Turnover
FY 2017
Net Revenue
Avg. Total Assets
Total Asset Turnover
What information is communicated from the Total Asset Turnover ratio? Should Macy’s management be concerned with the change in ratio between FY 2018 to FY 2019? Please explain and provide one possible and reasonable explanation for the change in the ratio.
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Please provide one recommendation, if any, for improving the FY 2019 ratio.
