you are a financial analyst. Based on your analysis of Macys financial statements, provide a report to guide investors whether Macys is a buy (keep) or sell stock. Your report should include the following a. An interpretation of trends illustrated by supportive ratios, horizontal and vertical analysis and focus on the main ratios that tell the story. (a minimum of one page-not to exceed two pages, single space, 12 font size). i. horizontal and vertical analysis (9 points) ii. Liquidity analysis (9 points) iii. Profitability analysis (9 points) iv. Solvency analysis (9 points) b. Your informed recommendation (buy or sell) about Macys with justifications. What is your general impression about Macys ? Support your conclusion (1- paragraph)
Macy's Inc (NYS: M) Ac Reported Annual Balance Sheet Horizontal Analytic (Y3/Y2) Vertical Analysis Ya Vertical Analytic Y2 1224 30.5% 4.1% 7.5% 1.9% 26.7% 2.3% 38.4% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Y3 1.455.000 363.000 5.178,000 448.000 7,444.000 1.494.000 4.106.000 1,444.000 4.204.000 34.000 11.282.000 4.610.000 6,672.000 3.897.000 488,000 880.000 18,381,000 3.0% Y2 1.297.000 522.000 5.399.000 408.000 7,828,000 1,541,000 4.212.000 1.545.000 4,541,000 34.000 11.873.000 4,856,000 7.017.000 3.897.000 498.000 813.000 18,861,000 300.000 6.5% 6.5% 2.6% 27.2% 2.1% 38.494 7.8% 21.29 7.8% 22.9% 21.2% 7.59 21.7% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -50% 50.8% 0.1 0.1 0.1 23.8% Y1 1.109.000 558.000 5.506,000 479.000 7,852,000 1.629.000 4.690.000 1.672.000 4.910.000 34.000 12.935.000 5.319.000 7.616.000 3.897.000 514.000 897.000 20,578,000 59.000 577.000 6.000 642.000 1.525.000 814.000 920.000 153,000 257.000 184.000 123.000 165.000 127.000 4.9% 20.1% 2.5% 8.2% 0.1 0.1 0.1 24.5% 35.3% 19.6% 2.5% 4.196 100.0 1.5% #VALUE! 1000% #VALUE! #VALUE! 144.4% -92.9% 11.7% 0.1% 0.1% NA 22.000 22.000 1.590,000 735.000 967.000 229.000 194.000 157.000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3.8% 5.0% 9.000 309.000 1.423.000 754.000 970.000 215.000 208.000 166,000 166.000 174.000 119.000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Report Date Cash & cash equivalents Receivables Merchandise inventories Prepaid expenses & other current asses Total current accots Land Buildings on owned land Buildings on leased land &losschold improve Fitures & equipment Leased properties under capitalized losses Property & equipment, at cost Les accumulated depreciation & amortization Property & equipment, net Goodwill Other intangible assets, not Other assets Total acces Senior debentures Senior notes Capitalse¤t portion of other long-term obligat Short-term det Merchandise secounts payable Accounts payable Git cards & customer award certificates Accrued wages & Vacation Oument portion of post employment & postretirement bei Taxes other than income taxes Severance & relocation Lease related liabilities Oument portion of workers' compensation & general labi Restructuring accruals, inducing severance Allowance for future sales returns Accrued interest Deferred real estate gains Other accounts payable & accrued liabilities Accounts payable & accrued abilities Income De forrad income taxes Total Ourrent abides Senior notes Senior debentures Amortizing dobentures Un amortized debt issue cost Un amortized debt discount Premium on acquired debt Capital loose & other long term obligations Long-term dobt Deferred Income taxes Other abilities Total Liabet Commonsi Additional pidin capital Accumulated equly (defidt) Tresury stock Accumulated other comprehensive income (10%) Total Macy's, Inc. shareholders equity (deficit) Noncontrolling interest Total chareholders' equity 6.5% 6.7% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.6% 7.2% 3.8% 4.9% 1.15 1.09 0.8% 0.8% 0.9% 0.6% #VALUE: 0.5% #VALUE! 1.0% 0.8% #VALUE! 1.0% 0.6% 0.5% 0.5% 0.1 0.1 #VALUE! 6.3% 189.000 108.000 93.000 90.000 70.000 65.000 270.000 3.167.000 296.000 88.000 112.000 96.000 74.000 340.000 281.000 3.563,000 352.000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 80.99 1.7% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 390.000 3,333.000 227.000 17.99 1.8% #VALUE! -11.1% -15.99 #VALUE! -10.15 49.5% 54.7% -27.3% -13.8% 0.3% 1.4% 16.3% 1.5% #VALUE 26.2% 10.4% 19.4% 0.1% -0.1% -0.1% 5.0 76.000 2.021.000 3.769.000 16.000 (25.000) (13.0001 67.000 26.000 5.861.000 1.1 22.000 1.662.000 13,7 20,000 3.000 676.000 7.174.000 1.456.000 (724.000 5.673.000 (12.000) 5.881,000 5.847.000 4,000,000 2.437.000 22.000 (29,000 (16,000 121.000 27.000 6.562.000 1.443.000 1.877.000 15.528.000 3.000 617.000 6.088,000 1,489.000 (896.0001 4.323.000 (1.0001 4,322,000 5,728.000 4.000.000 2.845.000 26.000 (32.0001 (16.0001 143.000 29.000 6.995.000 1.477,000 2.123.000 18.323.000 3.000 621,000 6.334.000 1.665.000 (1.043.0001 4 250.000 3.000 4,253,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -3.7% -10.7% -22.2% - 11.5% -11.6% 0.0% 9.6% 17.8% 0.196 30.2% 5.8% 8.6% 70.8% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 20.2% 12.3% 0.1% -0.1% 0.1% 0.6% 0.1% 33.1% 7.3% 9.5% 78.2% 0.0% 3.1% 30.7% 7.5% 4.5% 21.89 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3.59 0.1 0.1 0.1 0.1 0.1 0.1 0.1 37.0% 7.5% -3.7% -19.2% 31.25 1100.0% 31.0% -0.19 29.26 21.8% 5.5 5.5 Macy's Inc (NYS: M) As Reported Annual Income Statement Horizontal Analysis (Y3/Y2) Vertical AnalysisY3 Vertical Analysis Y2 Y3 24,837,000 15, 152,000 9,685,000 8,131,000 544,000 Y2 25,778,000 15,621,000 10,157,000 8,265,000 Y1 27,079,000 16,496,000 10,583,000 8,256,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 479,000 288,000 0.1 186,000 105,000 98,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Report Date Net sales Cost of sales Gross margin (loss) Selling, general & administrative expenses Gains on sale of real estate Impairments, store dosing costs & division consolidation costs Restructuring, impairment, store dosing and other costs Settlement charges Gain on sale of properties, impairments, store closing costs & Operating income (loss) Interest on debt Amortization of debt premium Amortization of financing costs & debt discount Interest on capitalized leases Interest expense, gross Less interest capitalized on construction Interest expense Net premiums on early retirement of debt Interest income Income (loss) before income taxes Current income tax expense - federal Deferred income tax expense (benefit) - federal Total income tax expense benefit) - federal Current income tax expense - state & local Deferred income tax expense (benefit) - state & local Total income tax expense benefit) - state & local Federal, state & local income tax expense (benefit) Net income (loss) Net income attributable to non-controlling interest Net income attributable to Macy's, Inc. shareholders 1,315,000 392,000 22,000) 5,000 2,000 377,000 10,000 367,000 2,039,000 393,000 21,000) 6,000 2,000 380,000 17,000 363,000 3.7% 3.0% 4.6% -1.6% #VALUE! #VALUE! #VALUE! 7.1% #VALUE! 37.4% -15.3% -59.1% 40.0% 0.0% -11.9% 10.0% -12.5% #VALUE! 175.0% 58.3% -15.2% 261.6% -127.6% 56.8% -1100.0% 69.7% -108.5% 151.4% 37.5% 149.9% 1,807,000 332,000 9,000 7,000 2,000 332,000 11,000 321,000 10,000 11,000 1,507,000 367,000 (452,000) (85,000) 16,000 40,000 56,000 29,000) 1,536,000 11,000 1,547,000 100.0% 61.0% 39.0% 32.7% 22% #VALUE! 0.7% 0.4% #VALUE! 7.3% 1.3% 0.0% 0.0% 0.0% 1.3% 0.0% 1.3% 0.0% 0.0% % 6.1% % 1.5% -1.8% -0.3% 0.1% 0.2% 0.2% -0.1% 6.2% 0.0% 6.2% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 100.0% 60.6% 39.4% 32.1% #VALUE! 1.9% #VALUE! 0.4% #VALUE! 5.1% 1.5% -0.1% 0.0% 0.0% 1.5% 0.0% 1.4% #VALUE! 0.0% 3.7% 1.7% -0.5% 1.2% 0.1% 0.0% 0.1% 1.3% 2.4% 0.0% 2.4% GGGGGGG GGGGG 2,000 1,678,000 536,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 4,000 952,000 433,000 (125,000) 308,000 37,000 (4,000) 33,000 341,000 611,000 8,000 619,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 536,000 72,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 72,000 608,000 1,070,000 2,000 1,072,000 2.4 24 2.8 2.8 2.6 2.6 Macy's Inc (NYS: M) As Reported Annual Cash Flow Report Date Net income (lo ss) Loss (gain) on sale of properties, impairments, store closing costs & division consolidation costs Impairments, store closing costs & division consolidation costs Restructuring, impaiment, store dosing & other costs Settlement charges Depreciation & amortization Stock based compensation expense Loss (gain) on sale of real estate Amortization of financing costs & premium on acquired debt Receivables Merchandise inventories Prepaid expenses & other current assets Other assets not separately identified Merchandise accounts payable Accounts payable & accrued liabilities not separately identified Accounts payable, accrued liabilities & other items not separately identified Current income taxes Deferred income taxes Other liabilities not separately identified Other assets & liabilities not separately identified Net cash flows from operating activities Purchase of property & equipment Capitalized software Acquisition of Bluemercury, Inc., net of cash acquired Disposition of property & equipment Other cash flows from investing activities Net cash flows from investing activities Debt repaid Dividends paid Debt issued Increase (decrease) in outstanding checks Acquisition of treasury stock Issuance of common stock Financing costs Proceeds from noncontrolling interest Net cash flows from financing activites Net increase (decrease) in cash & cash equivalents Cash & cash equivalents beginning of period Cash & cash equivalents end of period Interest paid Interest received Income taxes paid (net of refunds received) Y3 1,536,000 T2 611,000 Yi 1,070,000 479,000 288,000 1,061,000 65,000 186,000 105,000 991,000 58,000 (544,000) (45,000) 120,000 221,000 (14,000) (14,000) (45,000) (60,000) 98,000 1,058,000 61,000 (209,000) (14,000) (1,000) 107,000 (8,000) (132,000) (162,000) 125,000 (139,000) (73,000) 162,000 (1,000) (78,000) (179,000) (114,000) (412,000) (144,000) (69,000) (1,000) (88,000) (127,000) 1,944,000 (487,000) (273,000) 1,801,000 (596,000) (316,000) 411,000 (24,000) (373,000) (954,000) (461,000) (15,000) (1,000) 6,000 (1,000) 13,000 (1,413,000) 158,000 1,297,000 1,455,000 361,000 12,000 496,000 673,000 52,000 (187,000) (751,000) (459,000) 2,000 61,000 (316,000) 36,000 (3,000) 4,000 (1,426,000) 188,000 1,109,000 1,297,000 396,000 4,000 352,000 1,984,000 (777,000) (336,000) (212,000) 204,000 29,000 (1,092,000) (152,000) (456,000) 499,000 (83,000) (2,001,000) 163,000 (4,000) 5,000 (2,029,000) (1,137,000) 2,246,000 1,109,000 383,000 2,000 635,000 RATIO ANALYSIS Y3 Y2 0.5 LIQUIDITY Working Capital Current Ratio Quick Ratio Inventory Turnover Inventory Turnover in days Accounts Receivable Turnover Accounts Receivable Turnover in days Accounts Payable turnover Accounts Payable Turnoverin days Days in operating cycle PROFITABILITY 2369000 1.47 0.36 2.87 127.40 56.13 6.50 20.06 18.20 115.70 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 chcn cncncncncncncnch 1979000 1.35 0.32 2.86 127.40 47.74 7.65 19.79 18.45 116.60 OOOOOOOOOO 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 en in in un unin en in en un 0.5 0.5 0.5 Total Asset Tumover Profit Margin Gross Profit Rate Return on Equity E amings per Share (EPS) Price/Earnings Ratio Dividend Payout Ratio SOLVENCY 1.27 0.06 0.39 0.31 5.07 4.91 0.5 0.5 0.5 0.5 0.5 0.5 0 ooooooo cncncncncnch 1.28 0.02 0.39 0.14 2.01 14.51 OOooooo 0.5 in un inn i en 0.5 0.5 0 0.71 5.73 2.42 0.5 0.5 0.5 Ooo in onun 0.78 3.62 3.59 Ooo 0.5 0.5 0.5 nchon Debt to Assets Ratio Times Interest Earned Debt to Equity ADDITIONAL INFORMATION Weighted average shares outstanding - basic Market Price per Share at Year End 305400 24.89 308500 29.11 9.5 9.5 9.5 9.5 Macy's Inc (NYS: M) Ac Reported Annual Balance Sheet Horizontal Analytic (Y3/Y2) Vertical Analysis Ya Vertical Analytic Y2 1224 30.5% 4.1% 7.5% 1.9% 26.7% 2.3% 38.4% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Y3 1.455.000 363.000 5.178,000 448.000 7,444.000 1.494.000 4.106.000 1,444.000 4.204.000 34.000 11.282.000 4.610.000 6,672.000 3.897.000 488,000 880.000 18,381,000 3.0% Y2 1.297.000 522.000 5.399.000 408.000 7,828,000 1,541,000 4.212.000 1.545.000 4,541,000 34.000 11.873.000 4,856,000 7.017.000 3.897.000 498.000 813.000 18,861,000 300.000 6.5% 6.5% 2.6% 27.2% 2.1% 38.494 7.8% 21.29 7.8% 22.9% 21.2% 7.59 21.7% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -50% 50.8% 0.1 0.1 0.1 23.8% Y1 1.109.000 558.000 5.506,000 479.000 7,852,000 1.629.000 4.690.000 1.672.000 4.910.000 34.000 12.935.000 5.319.000 7.616.000 3.897.000 514.000 897.000 20,578,000 59.000 577.000 6.000 642.000 1.525.000 814.000 920.000 153,000 257.000 184.000 123.000 165.000 127.000 4.9% 20.1% 2.5% 8.2% 0.1 0.1 0.1 24.5% 35.3% 19.6% 2.5% 4.196 100.0 1.5% #VALUE! 1000% #VALUE! #VALUE! 144.4% -92.9% 11.7% 0.1% 0.1% NA 22.000 22.000 1.590,000 735.000 967.000 229.000 194.000 157.000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3.8% 5.0% 9.000 309.000 1.423.000 754.000 970.000 215.000 208.000 166,000 166.000 174.000 119.000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Report Date Cash & cash equivalents Receivables Merchandise inventories Prepaid expenses & other current asses Total current accots Land Buildings on owned land Buildings on leased land &losschold improve Fitures & equipment Leased properties under capitalized losses Property & equipment, at cost Les accumulated depreciation & amortization Property & equipment, net Goodwill Other intangible assets, not Other assets Total acces Senior debentures Senior notes Capitalse¤t portion of other long-term obligat Short-term det Merchandise secounts payable Accounts payable Git cards & customer award certificates Accrued wages & Vacation Oument portion of post employment & postretirement bei Taxes other than income taxes Severance & relocation Lease related liabilities Oument portion of workers' compensation & general labi Restructuring accruals, inducing severance Allowance for future sales returns Accrued interest Deferred real estate gains Other accounts payable & accrued liabilities Accounts payable & accrued abilities Income De forrad income taxes Total Ourrent abides Senior notes Senior debentures Amortizing dobentures Un amortized debt issue cost Un amortized debt discount Premium on acquired debt Capital loose & other long term obligations Long-term dobt Deferred Income taxes Other abilities Total Liabet Commonsi Additional pidin capital Accumulated equly (defidt) Tresury stock Accumulated other comprehensive income (10%) Total Macy's, Inc. shareholders equity (deficit) Noncontrolling interest Total chareholders' equity 6.5% 6.7% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.6% 7.2% 3.8% 4.9% 1.15 1.09 0.8% 0.8% 0.9% 0.6% #VALUE: 0.5% #VALUE! 1.0% 0.8% #VALUE! 1.0% 0.6% 0.5% 0.5% 0.1 0.1 #VALUE! 6.3% 189.000 108.000 93.000 90.000 70.000 65.000 270.000 3.167.000 296.000 88.000 112.000 96.000 74.000 340.000 281.000 3.563,000 352.000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 80.99 1.7% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 390.000 3,333.000 227.000 17.99 1.8% #VALUE! -11.1% -15.99 #VALUE! -10.15 49.5% 54.7% -27.3% -13.8% 0.3% 1.4% 16.3% 1.5% #VALUE 26.2% 10.4% 19.4% 0.1% -0.1% -0.1% 5.0 76.000 2.021.000 3.769.000 16.000 (25.000) (13.0001 67.000 26.000 5.861.000 1.1 22.000 1.662.000 13,7 20,000 3.000 676.000 7.174.000 1.456.000 (724.000 5.673.000 (12.000) 5.881,000 5.847.000 4,000,000 2.437.000 22.000 (29,000 (16,000 121.000 27.000 6.562.000 1.443.000 1.877.000 15.528.000 3.000 617.000 6.088,000 1,489.000 (896.0001 4.323.000 (1.0001 4,322,000 5,728.000 4.000.000 2.845.000 26.000 (32.0001 (16.0001 143.000 29.000 6.995.000 1.477,000 2.123.000 18.323.000 3.000 621,000 6.334.000 1.665.000 (1.043.0001 4 250.000 3.000 4,253,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -3.7% -10.7% -22.2% - 11.5% -11.6% 0.0% 9.6% 17.8% 0.196 30.2% 5.8% 8.6% 70.8% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 20.2% 12.3% 0.1% -0.1% 0.1% 0.6% 0.1% 33.1% 7.3% 9.5% 78.2% 0.0% 3.1% 30.7% 7.5% 4.5% 21.89 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3.59 0.1 0.1 0.1 0.1 0.1 0.1 0.1 37.0% 7.5% -3.7% -19.2% 31.25 1100.0% 31.0% -0.19 29.26 21.8% 5.5 5.5 Macy's Inc (NYS: M) As Reported Annual Income Statement Horizontal Analysis (Y3/Y2) Vertical AnalysisY3 Vertical Analysis Y2 Y3 24,837,000 15, 152,000 9,685,000 8,131,000 544,000 Y2 25,778,000 15,621,000 10,157,000 8,265,000 Y1 27,079,000 16,496,000 10,583,000 8,256,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 479,000 288,000 0.1 186,000 105,000 98,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Report Date Net sales Cost of sales Gross margin (loss) Selling, general & administrative expenses Gains on sale of real estate Impairments, store dosing costs & division consolidation costs Restructuring, impairment, store dosing and other costs Settlement charges Gain on sale of properties, impairments, store closing costs & Operating income (loss) Interest on debt Amortization of debt premium Amortization of financing costs & debt discount Interest on capitalized leases Interest expense, gross Less interest capitalized on construction Interest expense Net premiums on early retirement of debt Interest income Income (loss) before income taxes Current income tax expense - federal Deferred income tax expense (benefit) - federal Total income tax expense benefit) - federal Current income tax expense - state & local Deferred income tax expense (benefit) - state & local Total income tax expense benefit) - state & local Federal, state & local income tax expense (benefit) Net income (loss) Net income attributable to non-controlling interest Net income attributable to Macy's, Inc. shareholders 1,315,000 392,000 22,000) 5,000 2,000 377,000 10,000 367,000 2,039,000 393,000 21,000) 6,000 2,000 380,000 17,000 363,000 3.7% 3.0% 4.6% -1.6% #VALUE! #VALUE! #VALUE! 7.1% #VALUE! 37.4% -15.3% -59.1% 40.0% 0.0% -11.9% 10.0% -12.5% #VALUE! 175.0% 58.3% -15.2% 261.6% -127.6% 56.8% -1100.0% 69.7% -108.5% 151.4% 37.5% 149.9% 1,807,000 332,000 9,000 7,000 2,000 332,000 11,000 321,000 10,000 11,000 1,507,000 367,000 (452,000) (85,000) 16,000 40,000 56,000 29,000) 1,536,000 11,000 1,547,000 100.0% 61.0% 39.0% 32.7% 22% #VALUE! 0.7% 0.4% #VALUE! 7.3% 1.3% 0.0% 0.0% 0.0% 1.3% 0.0% 1.3% 0.0% 0.0% % 6.1% % 1.5% -1.8% -0.3% 0.1% 0.2% 0.2% -0.1% 6.2% 0.0% 6.2% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 100.0% 60.6% 39.4% 32.1% #VALUE! 1.9% #VALUE! 0.4% #VALUE! 5.1% 1.5% -0.1% 0.0% 0.0% 1.5% 0.0% 1.4% #VALUE! 0.0% 3.7% 1.7% -0.5% 1.2% 0.1% 0.0% 0.1% 1.3% 2.4% 0.0% 2.4% GGGGGGG GGGGG 2,000 1,678,000 536,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 4,000 952,000 433,000 (125,000) 308,000 37,000 (4,000) 33,000 341,000 611,000 8,000 619,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 536,000 72,000 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 72,000 608,000 1,070,000 2,000 1,072,000 2.4 24 2.8 2.8 2.6 2.6 Macy's Inc (NYS: M) As Reported Annual Cash Flow Report Date Net income (lo ss) Loss (gain) on sale of properties, impairments, store closing costs & division consolidation costs Impairments, store closing costs & division consolidation costs Restructuring, impaiment, store dosing & other costs Settlement charges Depreciation & amortization Stock based compensation expense Loss (gain) on sale of real estate Amortization of financing costs & premium on acquired debt Receivables Merchandise inventories Prepaid expenses & other current assets Other assets not separately identified Merchandise accounts payable Accounts payable & accrued liabilities not separately identified Accounts payable, accrued liabilities & other items not separately identified Current income taxes Deferred income taxes Other liabilities not separately identified Other assets & liabilities not separately identified Net cash flows from operating activities Purchase of property & equipment Capitalized software Acquisition of Bluemercury, Inc., net of cash acquired Disposition of property & equipment Other cash flows from investing activities Net cash flows from investing activities Debt repaid Dividends paid Debt issued Increase (decrease) in outstanding checks Acquisition of treasury stock Issuance of common stock Financing costs Proceeds from noncontrolling interest Net cash flows from financing activites Net increase (decrease) in cash & cash equivalents Cash & cash equivalents beginning of period Cash & cash equivalents end of period Interest paid Interest received Income taxes paid (net of refunds received) Y3 1,536,000 T2 611,000 Yi 1,070,000 479,000 288,000 1,061,000 65,000 186,000 105,000 991,000 58,000 (544,000) (45,000) 120,000 221,000 (14,000) (14,000) (45,000) (60,000) 98,000 1,058,000 61,000 (209,000) (14,000) (1,000) 107,000 (8,000) (132,000) (162,000) 125,000 (139,000) (73,000) 162,000 (1,000) (78,000) (179,000) (114,000) (412,000) (144,000) (69,000) (1,000) (88,000) (127,000) 1,944,000 (487,000) (273,000) 1,801,000 (596,000) (316,000) 411,000 (24,000) (373,000) (954,000) (461,000) (15,000) (1,000) 6,000 (1,000) 13,000 (1,413,000) 158,000 1,297,000 1,455,000 361,000 12,000 496,000 673,000 52,000 (187,000) (751,000) (459,000) 2,000 61,000 (316,000) 36,000 (3,000) 4,000 (1,426,000) 188,000 1,109,000 1,297,000 396,000 4,000 352,000 1,984,000 (777,000) (336,000) (212,000) 204,000 29,000 (1,092,000) (152,000) (456,000) 499,000 (83,000) (2,001,000) 163,000 (4,000) 5,000 (2,029,000) (1,137,000) 2,246,000 1,109,000 383,000 2,000 635,000 RATIO ANALYSIS Y3 Y2 0.5 LIQUIDITY Working Capital Current Ratio Quick Ratio Inventory Turnover Inventory Turnover in days Accounts Receivable Turnover Accounts Receivable Turnover in days Accounts Payable turnover Accounts Payable Turnoverin days Days in operating cycle PROFITABILITY 2369000 1.47 0.36 2.87 127.40 56.13 6.50 20.06 18.20 115.70 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 chcn cncncncncncncnch 1979000 1.35 0.32 2.86 127.40 47.74 7.65 19.79 18.45 116.60 OOOOOOOOOO 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 en in in un unin en in en un 0.5 0.5 0.5 Total Asset Tumover Profit Margin Gross Profit Rate Return on Equity E amings per Share (EPS) Price/Earnings Ratio Dividend Payout Ratio SOLVENCY 1.27 0.06 0.39 0.31 5.07 4.91 0.5 0.5 0.5 0.5 0.5 0.5 0 ooooooo cncncncncnch 1.28 0.02 0.39 0.14 2.01 14.51 OOooooo 0.5 in un inn i en 0.5 0.5 0 0.71 5.73 2.42 0.5 0.5 0.5 Ooo in onun 0.78 3.62 3.59 Ooo 0.5 0.5 0.5 nchon Debt to Assets Ratio Times Interest Earned Debt to Equity ADDITIONAL INFORMATION Weighted average shares outstanding - basic Market Price per Share at Year End 305400 24.89 308500 29.11 9.5 9.5 9.5 9.5
