Saks Fifth Avenue vs. Neiman Marcus - A Detailed Company Analysis Using Balance Sheets and Income Statements

I am writing to discerp the companys current balance jaundiced journalism and income statement. Particularly, I go away critique on the companys results, equate it to preceding(a) years, comp atomic number 18 it to competitors, and make recommendations on how to improve its financial position. Neiman Marcus element stores offer luxurious and steep-quality mens room and womens app bel and accessories. The Neiman Marcus Group operates 35 stores in nearly 20 states. The 2004 net income was an impressive $204 gazillion and receipts was $3.5 billion. More importantly, their gross network was $1.2 billion. Their net income is or so 5.8% (compared to get along revenue) and 1.7% (compared to their gross profit). This whitethorn seem little, besides when a company revenues such a large amount, a blue percentage net income is a very large amount, as exemplified. Comparing it with their largest competition - take out Fifth Saks Avenue (Saks) - Neiman Marcus earns 5 times their competitions income. The profit design is very adequate. Neiman Marcus income statement builds their fiscal period ends in July. The thoroughgoing revenue was $3.5 billion notwithstanding their cost of revenue was $2.3 billion. This is 66% of their revenue. This is significantly racy, besides again, to cocksure revenue comes with depreciates. After calculations, the total set downs were approximately $1 billion. On the given income statement (attached) they show mostly taxation and farm expenses.

These expenses cannot be commented on because they are standard, as directed by the government. However, we are given the merchandising general and administrative expense, which was $875 million. These are associated with payrolls and running the company. These expenses are 71.5% of the companys gross profit. These expenses are high and should be lowered; but in comparison to their competition, it is 10% lower. There is always room for avail and by lowering expenses, nonpareil can increase net... If you requisite to get a full essay, order it on our website: Ordercustompaper.com

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