Macys debt to equity ratio

success. It involves using the results of both industry and competitive analysis and com pany situation analysis to identify a "worry list" of issues to be resolved for the company to be financially and competitively successful in the years ahead. Actually deciding upon a strategy and what specific actions to take comes after the list of strategic issues and prob- lems that merit front-burner management attention has been developed. Good company situation analysis, like good industry and competitive analysis, is a valuable precondition for good strategy making ASSURANCE OF LEARNING EXERCISES Using the financial ratios provided in the Appendix and the following financial statement information for Macy's, Inc.,.calculate the following ratios for Macy's for both 2015 and 2016. 1. 1. Gross profit margin 2. Operating profit margin 3. Net profit margin 4. Times interest earned coverage 5. Return on shareholders' equity 6. Return on assets 7. Long.term debt-to-equity ratio 8. Days of inventory 9. Inventory turnover ratio 10. Average collection period Based on these ratios, did Macy's financial performance improve, weaken, or remain about the same from 2015 to 2016?
Consolidated Statements of Income for Macy's, Inc., 2015-2016 in millions, except per share amounts) 2016 2015 Net sales Cost of sales Gross margin Selling, general and administrative expenses Impairments, store closing and other costs Settlement charges Operating income Interest expense Premium on early retirement of debt Interest income Income before income taxes Federal, state, and local income tax expense Net income Net loss attributable to noncontrolling interest Net income attributable 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 $25,778 $27,079 15.621 (16,496) 10,583 10,157 (8,265) 479) (8,256) (288) 1,315 (367) 2,039 (363) 952 ,678 611 1,070 619 $2.01 1.99 1.072 $ 3.26 3.22 $ Consolidated Balance Sheets for Macy's, Inc., 2015-2016 (in millions) 2015 2016 ASSETS Current Assets: 1,297 522 5,399 408 7,626 7,017 3,897 498 813 $19,851 $1,109 558 5,506 479 7,652 7,616 3,897 514 897 $20,576 Cash and cash equivalents Receivables Merchandise inventories Prepaid expenses and other current assets Total Current Assets Property and Equipment net Goodwill Other Intangible Assets -net Other Assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilties: Short-term debt Merchandise accounts payable Accounts payable and accrued liabilities Income taxes $309 1,423 3,563 352 5,647 6,562 1,443 1,877 $642 1,526 3,333 227 5,728 6,995 1,477 2,123 Total Current Liabilities Long-Term Debt Deferred Income Taxes Other Liabilities
Chapter 4 Evaluating a Company's Resources, Capabilities, and Competit 2016 2015 Shareholders' Equity Common stock (304.1 and 310.3 shares outstanding) Additional paid-in capital Accumulated equity Treasury stock Accumulated other comprehensive loss 617 6,088 (1,489) 896 4,323 621 6,334 (1,665) (1,043) 4,250 Total Macy's, Inc., Shareholders' Equity Noncontrolling interest 4.322 $19,851 4,253 $20,576 Total Shareholders' Equity Total Liabilities and Shareholders' Equity Source: Macy's, Inc., 2016 10-K. REI operates more than 140 sporting goods and outdoor recreation stores in 36 states. How many of the four tests of the competitive power of a resource does the retail store network pass? Explain your answer. LO4 2. 3. Review the information in Concepts &Connections 4.1 concerning Boll& Branch's aver LO age costs of producing and selling a king-sized sheet set, and compare this with the repre sentative value chain depicted in Figure 4.1. Then answer the following questions: a. Which of the company's costs correspond to the primary value chain activities depicted in Figure 4.1? Which of the company's costs correspond to the support activities described in Figure 4.1? What value chain activities might be important in securing or maintaining Boll & Branch's competitive advantage? Explain your answer. b. c. Using the methodology illustrated in Table 4.3 and your knowledge as an automobile owner, prepare a competitive strength assessment for General Motors and its rivals Ford, Chrysler, Toyota, and Honda. Each of the five automobile manufacturers should be evalu 4. LO