Ratio Analysis Of Macy's 2015

Satisfactory Essays
The ratio analysis of Macy’s 2015 annual report shows that the company faced tremendous challenges in maintaining its performance since last year. The company’s performance declined as compared to its performance in 2014. The declining profit margin from 5.43 % to 3.95% shows the company is not generating strong sales, lower current ratio of 1.34 to 1.69 shows that the company has difficulties in paying its short-term obligations, fall in ROE from 28.37% to 25.18% indicates that the management has been less efficient in utilizing its equity base and return to investors and interest coverage ratio of 5.62% While evaluating these results, one can ask several questions to understand the reasons of the fall in the company’s
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