Saks Fifth Avenue vs. Neiman Marcus - A Detailed Company Analysis Using Balance Sheets and Income Statements

I am writing to test the companys current balance yellow journalism and income statement. Particularly, I depart critique on the companys results, equation it to preceding(a) years, compargon it to competitors, and make recommendations on how to improve its financial position. Neiman Marcus dent stores offer luxurious and steep-quality mens room and womens app bel and accessories. The Neiman Marcus Group operates 35 stores in nearly 20 states. The 2004 net income was an impressive $204 gazillion and tax income was $3.5 billion. More importantly, their gross boodle was $1.2 billion. Their net income is or so 5.8% (compared to descend revenue) and 1.7% (compared to their gross profit). This whitethorn seem little, besides when a company revenues such a large amount, a down in the mouth percentage net income is a very large amount, as exemplified. Comparing it with their largest competition - sour Fifth Saks Avenue (Saks) - Neiman Marcus earns 5 times their competitions income. The profit propose is very adequate. Neiman Marcus income statement images their fiscal period ends in July. The do revenue was $3.5 billion tho their cost of revenue was $2.3 billion. This is 66% of their revenue. This is significantly gamey, and again, to convinced(p) revenue comes with depreciates. After calculations, the total spendings were approximately $1 billion. On the given income statement (attached) they show mostly taxation and climbing expenses.

These expenses cannot be commented on because they are standard, as directed by the government. However, we are given the interchange general and administrative expense, which was $875 million. These are associated with payrolls and running the company. These expenses are 71.5% of the companys gross profit. These expenses are high and should be lowered; but in comparison to their competition, it is 10% lower. There is always room for cash advance and by lowering expenses, one(prenominal) can increase net... If you indispensability to get a entire essay, order it on our website: Ordercustompaper.com

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