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

Book: Gamble, John E., Peteraf, Margaret A, and Arthur A Thompson 2013. Essentials of Strategic Management: The Quest for Competitive Advantage, 4th Edition, New York, NY: McGraw-Hill. ISBN 978-0-07-811289-8

Using the formulas in the appendix of the text on pages 240–241 and the data in Macy’s financial statement (found on pages 88-89), 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