Using the financial ratios provided in the Appendix and the financial statement information for Macys Inc. below, calculate the following ratios for Macys for both 2018 and 2019:
- Gross profit margin.
- Operating profit margin.
- Net profit margin.
- Times interest earned coverage.
- Return on shareholders equity.
- Return on assets.
- Debt-to-equity ratio.
- Days of inventory.
- Inventory turnover ratio.
- Average collection period.
Consolidated Statements of Income for Macy's Inc., Feb. 03, 2018-Feb. 02, 2019 (in millions, excej per share data) 2019 2018 Net sales $24.971 $24,939 Credit Card Revenues, Net 768 702 Cost of Sales (15,215) (15,181) Selling, General, and Administrative Expenses (9,039) (8,954) Gains on Sale of Real Estate 389 544 (186) 1,864 Restructuring Impairment, Store Closing, and Other Costs Operating Income/Loss Benefit Plan Income Settlement Charges Interest Expense (136) 1.738 39 (88) (261) 57 (105) (321) Gains (Losses) on Early Retirement of Debt Interest Income Income (loss) before Income Taxes Federal, State, and Local Income Tax Benefit (Expense) Net income (LOSS) Net Loss Attributed to Noncontrolling interest Net income Attributed to Macy's, Inc. Shareholders (33) 25 1,420 (322) 1,098 10 $1,108 10 11 1.516 39 1.555 11 $1,566 Consolidated Statements of income for Macy's Inc., Feb. 03, 2018-Feb. 02, 2019 (in millions, excej per share data) 2019 2018 Net sales $24,971 $24,939 Credit Card Revenues, Net 768 702 Cost of Sales (15,215) (15,181) Selling. General, and Administrative Expenses (9,039) (8.954) Gains on Sale of Real Estate 389 544 (186) 1.864 Restructuring Impairment, Store Closing, and Other Costs Operating Income/Loss Benefit Plan Income Settlement Charges Interest Expense (136) 1738 39 (88) (261) 57 (105) (321) Gains (Losses) on Early Retirement of Debt Interest Income Income (loss) before Income Taxes Federal, State, and Local Income Tax Benefit (Expense) Net income (LOSS) Net Loss Attributed to Noncontrolling Interest Net income Attributed to Macy's, Inc. Shareholders (53) 25 1,420 322 1,098 10 $1,108 10 11 1,516 39 1,555 11 $1,566 Credit Card Revenues, Net Cost of Sales Selling, General, and Administrative Expenses Gains on Sale of Real Estate 768 (15,215) (9,039) 389 702 (15,181) (8,954) 544 Restructuring, Impairment, Store Closing, and Other Costs Operating Income/Loss Benefit Plan Income Settlement Charges interest Expense (136) 1738 39 (88) (261) (186) 1,864 57 (105) (321) Gains (Losses) on Early Retirement of Debt Interest income Income (oss) before income Taxes Federal, State, and Local income Tax Benefit (Expense) Net Income (Loss) Net Loss Attributed to Noncontrolling Interest Net Income Attributed to Macy's, Inc. Shareholders Basic Earnings per Share Attributable to Macy's, Inc. Shareholders Diluted Earnings per Share Attributable to Macy's, Inc. Shareholders (33) 25 1,420 (322) 1,098 10 $1,108 $3.60 10 11 1,516 39 1,555 11 $1,566 $5.13 $3.56 $5.10 Consolidated Balance Sheets for Macy's Inc., Feb. 03, 2018-Feb. 02, 2019 (in millions, except per Share date) ASSETS February 2, 2019 February 3, 2018 Current Assets Cash and Cash Equivalents $1,162 $1,445 Receivables 400 363 Merchandise Inventories 5,263 5,178 Prepaid Expenses and Other Current Assets 620 650 Total Current Assets $7,445 $7,646 Property and Equipment--Net 6,637 6.672 Goodwill 3,908 3,897 Other intangible Assets-Net 478 488 Other Assets 1726 880 Total Assets 19,194 19,583 $43 1,655 3,366 168 5,232 4,708 1,238 1,580 $22 1,590 3,271 296 5,179 5.861 1.148 1,662 LIABILITIES AND SHAREHOLDER EQUITY Current Liabilities Short-Term Debt Merchandise Accounts Payable Accounts Payable and Accrued Liabilities Income Taxes Total Current Liabilities Long-Term Debt Deferred Income Taxes Other Liabilities Shareholders' Equity: Common Stock (3075 and 304.8 shares outstanding) Additional Paid-in Capital Accumulated Equity Treasury Stock Accumulated Other Comprehensive LOSS Total Macy's Inc. Shareholders' Equity Noncontrolling Interest Total Shareholder Equity Total Liabilities and Shareholder Equity Source Macy's Inc. 2018 10-K 652 8,050 (1,318) (951) 6,436 3 676 7.246 (1.456) (724) 5,745 (12) $5733 $19,583 $6,436 $19,194
