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 2017 and 2018.

i. Gross profit margin ii. Operating profit margin iii. Net profit margin iv. Times interest earned coverage v. Return on shareholders’ equity vi. Return on assets vii. Long-term debt-to-equity ratio viii. Days of inventory ix. Inventory turnover ratio x. Average collection period Based on these ratios, did Macy’s financial performance improve, weaken, or remain about the same from 2015 to 2016?

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Consolidated Statements of Income for Macy's, Inc., 2017-2018 (in millions, except per share amounts) Net sales Credit Card Revenues, Net Cost of sales Selling, general and administrative expenses Gains on sale of real estate Restructuring, impairment, store closing and other costs Operating income (loss) Benefit plan income, net Settlement charges Interest expense 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 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 2018 $24,971 768 (15,215) (9,039) 389 (136) 1,738 39 (88) (261) (33) 25 1,420 (322) 1,098 10 $ 1,108 $3.60 $3.56 2017 $ 24,939 702 (15,181) (8,954) 544 (186) 1,864 57 (105) (321) 10 11 1,516 39 1,555 11 $ 1,566 $5.13 $5.10