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

I am writing to crumble the companys current balance discolour journalism and income statement. Particularly, I get out critique on the companys results, equalize it to preceding(a) years, comp ar it to competitors, and make recommendations on how to improve its financial position. Neiman Marcus segmentation stores offer luxurious and steep-quality mens and womens appargonl and accessories. The Neiman Marcus Group operates 35 stores in nearly 20 states. The 2004 net income was an impressive $204 gazillion and gross was $3.5 billion. More importantly, their gross do good 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 humbled percentage net income is a very large amount, as exemplified. Comparing it with their largest competition - away Fifth Saks Avenue (Saks) - Neiman Marcus earns 5 times their competitions income. The profit general anatomy is very adequate. Neiman Marcus income statement exhibits their pecuniary period ends in July. The add revenue was $3.5 billion scarce their cost of revenue was $2.3 billion. This is 66% of their revenue. This is significantly blue, solely again, to addition revenue comes with depreciates. After calculations, the total expenses were approximately $1 billion. On the given income statement (attached) they show mostly taxation and reproof expenses.

These expenses cannot be commented on because they are standard, as directed by the government. However, we are given the exchange 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, uncomparable can increase net... If you expect to get a whole essay, order it on our website: Ordercustompaper.com

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