Nordstrom, Inc. has select stores across Canada that compete against Hudson?s Bay Company and other higher-end retailers. Selected financial data (in millions) for the two companies? global operations are presented here.

Instructions

a. For each company, calculate the following ratios:

1. Current ratio

2. Receivables turnover

3. Inventory turnover?

4. Operating cycle

5. Debt to total assets

6. Interest coverage

7. Gross profit margin

8. Profit margin

9. Asset turnover

10. Return on assets

11. Return on equity

b. Compare the liquidity, solvency, and profitability of the two companies.

Taking It Further

If the entities presented other comprehensive loss, should it be factored into your analysis above?

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Hudson's Bay (C$) Feb. 3, 2018 Nordstrom (USS) Feb. 3, 2018 Statement of Comprehensive Income Total revenue Cost of sales $14,349 $15,478 9,890 8,514 Gross profit Operating expenses 5,835 5,588 4,662 6,481 Profit (loss) from operations Interest expense Other non-operating income (646) 926 228 136 75 Profit (loss) before income tax Income tax expense (benefit) (949) (368) 790 353 Profit (loss) $ (581) 437 | Hudson's Bay (C$) Feb. 3, 2018 Nordstrom (USS) Feb. 3, 2018 Balance Sheet $ 4,302 7,932 Current assets $ 3,503 4,612 Non-current assets Total assets $12,234 $ 8,115 $ 3,500 6,327 Current liabilities $ 3,289 Non-current liabilities 3,849 Total liabilities 7,138 9,827 2,407 Shareholders' equity 977 Total liabilities and shareholders' equity $12,234 $ 8,115 Additional information: Average accounts receivable Average inventories Average total assets Average total shareholders' equity 2$ 386 172 3,371.5 12,219 2,408.5 1,961.5 7,986.5 923.5