Table 1 Financial Results Wal Mart 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 Note Tax Rate is 35 7) Walmart ROA 9 46 ROE 23 26 ROFL 13 8 PM 5 49 AT 2 31 APT 5 96 ART 69 32 INVT 8 05 PPET 4 02 C2C 72 75 Macys ROA 7 02 ROE 19 8 ROFL 12 78 PM 7 6 AT 1 32 APT 3 34 ART 74 63 INVT 3 12 PPET 3 38 C2C 1 8 In the guidance of the financial ratios you calculated in question 7, discuss the differences you see in Walmarts and Macys performance in terms of overall financial efficiency, operational efficiency, and competitive strategic positioning (Hint For instance, discuss the difference between profit margins of Wal Mart and Macys How do interpret the difference in profit margins What does this difference reflect Repeat this discussion for the metrics in Table 2 as necessary )

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Table 1: Financial Results Wal-Mart 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

Table 1: Financial Results
Wal-Mart	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
Note: Tax Rate is 35%

7) Walmart

ROA= 9.46%

ROE= 23.26%

ROFL=13.8

PM= 5.49%

AT= 2.31

APT= 5.96

ART= 69.32

INVT= 8.05

PPET= 4.02

C2C= 72.75

Macys

ROA= 7.02%

ROE= 19.8%

ROFL= 12.78

PM=7.6%

AT=1.32

APT= 3.34

ART= 74.63

INVT= 3.12

PPET= 3.38

C2C= 1.8

In the guidance of the financial ratios you calculated in question 7, discuss the differences you see in Walmarts and Macys performance in terms of overall financial efficiency, operational efficiency, and competitive strategic positioning? (Hint: For instance, discuss the difference between profit margins of Wal-Mart and Macys. How do interpret the difference in profit margins? What does this difference reflect? Repeat this discussion for the metrics in Table 2 as necessary.)