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Return on Equity Net Income Shareholder Equity 17.746 17756 Return On Asset Net Profit Interest Exp. Total Asset 35 2251 (135 what are the implications of these two financial statements of Walmart and Macy's?
43803 Inventory 5308 3.15 COGS/ Inventory 8.5 Property Plant Equipment Turnover Revenue PP&E PPET 469162 116681 4.02 27931 81
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Answer #1

In terms of ROE, macy has shown better results. It means macy has been able to generate more return for corresponding equity invested than walmart.

Return on assets is way too high for macy. It means how much returns they are able to generate with available assets. The more the ratio the better.

The profit margin for macy is better than Walmart.

AR receivable turnover has to be high. It means you are able yo better manage receivables. Even here macy is performing good

Inventory turnover and sales/PP&E is better for Walmart than macy.

Overall both companies are doing good but macy has an edge over Walmart

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