The data in Macys financial statement (found above), calculate the following measures of financial performance:

a. Gross profit margin

b. Operating profit margin

c. Net profit margin

d. Times interest earned coverage

e. Return on shareholders equity

f. Return on assets

g. Debt-to-equity ratio

h. Days of inventory

i. Inventory turnover ratio

j. Average collection period

1.What do the companys profitability measures disclose about the companys performance and how well its strategy was working between 2011 and 2012? Explain your answer.

2.Which expense category had the biggest impact on the companys change in performance between 2011 and 2012? Explain your answer.

Consolidated Statements of Income for Macy's, Inc., 2011-2012 (in millions, except per share data) 2012 2011 27,686 26,405 Net sales Cost of sales 6,538 (15,738) 10,667 Gross margin 11,148 Selling, general, and administrative expenses 8.482 8,28 5) impairments, store closing costs and gain on sale of leases 25 Operating income 425 447) Interest expense Premium on early retirement of debt 37 Interest income Income before income taxes 1712) Federal, state, and local income tax expense 767 335 3 1256 Net income Basic earnings per share 3.29 2.96 Diluted earnings per share 3.24 2.92