scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 1,183
I am writing to analyse the companys current balance sheet and income statement Particularly I will critique on the companys results compare it to past years compare it to competitors and make recommendations on how to improve its financial position Neiman Marcus department stores offer luxurious and high-quality mens and womens apparel and accessories The Neiman Marcus Group operates 35 stores in nearly 20 states The 2004 net income was an impressive 204 million and revenue was 35 billion More importantly their gross profit was 12 billion Their net income is approximately 58 compared to total revenue and 17 compared to their gross profit This may seem little but when a company revenues such a large amount a small percentage net income is a very large amount as exemplified Comparing it with their largest competition - Off Fifth Saks Avenue Saks - Neiman Marcus earns 5 times their competitions income The profit figure is very adequate Neiman Marcus income statement shows their fiscal period ends in July The total revenue was 35 billion but their cost of revenue was 23 billion This is 66 of their revenue This is significantly high but again to increase revenue comes with expenses After calculations the total expenses were approximately 1 billion On the given income statement attached they show mostly taxation and interest expenses These expenses cannot be commented on because they are standard as directed by the government However we are given the selling general and administrative expense which was 875 million These are associated with payrolls and running the company These expenses are 715 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 improvement and by lowering expenses one can increase net income One suggestion are to reduce staff as in such a large company some locations must have poor salary control Remember to
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA