Evaluate the financial performance of each company

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Reference no: EM13927397

Case Study: Financial Statements for Walmart Stores Inc. and Macy's Inc.

The table below contains the financial results for Walmart and Macy's.

1. Evaluate the financial performance of each company based on various metrics such as ROE, ROA, profit margin, asset turns, APT, C2C, ART, INVT, and PPET.

2. Can you explain the differences you see in their performance based on their supply chain strategy and structure?

3. Which metrics does each company perform better on? What supply chain drivers and metrics might explain this difference in performance?

Year end  ($ millions)

Walmart

Macy's


Net operating revenues

469.162

27,686


Cost of goods sold

352,488

16,538


Gross profit

116,674

11,148


Selling, general, and administrative expense

88,873

8,482


Operating income

27,801

2,661


Interest expense

2.251

425


Other income (loss)-net

187

(134)


Income before income taxes

25,737

2.102


Income taxes

7,981

767


Net income

17.756

1,198


Assets

 

 


Cash and cash equivalents

7,781

1,836


Net receivables

6,768

371


Inventories

43.803

5,308


Total current assets

59,940

7,876


Property, plant, and equipment

116,681

8,196


Goodwill

20,497

3,743


Other assets

5,987

615


Total assets

203,105

20,991


Liabilities and Stockholder Equity

 

 


Accounts payable

59,099

4.951


Short-term debt

12,719

124


Total current liability

71,818

5,075


Long-term debt

41,417

6.806


Total liabilities

126.243

14,940


Stockholder equity


76,343

6,051


Reference no: EM13927397

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