This indicates that the company s stockholders fared poorly in 1999 losing 1.026 cents per every dollar. The TOT for the industry is higher at 2.32 and the economy at .99. Total Asset Turnover tells you how quickly the company is converting its physical asset base into sales.
Lower ratios suggest high degrees of capital intensity.
Therefore, since FD has a very high ratio, they most likely have a low degree of capital intensity. In 1999 Federated Department Stores had a PM of -.37 compared to the PM of 3.53 for the industry and 12.98 for the economy. Over the last five years the company had a PM of 2.99, which is lower than both the industry and economy s profit margins, which are at 3.26 and 10.66, respectively. Gross Margin - 5 Yr. 12.98 Net Profit Margin - 5 Yr.