Final answer:
Financial ratios for Macy's for 2021 include working capital, current ratio, gross profit margin, net profit margin, inventory turnover, days sales in inventory, AR turnover, days sales in AR, and debt ratio, each calculated using specific formulas based on the company's financial statements.
Step-by-step explanation:
Financial Ratios for Macy's in 2021
To calculate the different financial ratios for Macy's for the year 2021, it's important to use data from the company's financial statements, including the balance sheet and income statement. The following are the formulas and descriptions for each of the requested ratios:
Working Capital: This measures a company's operational efficiency and short-term financial health.
The formula is Current Assets - Current Liabilities.
Current Ratio: This ratio indicates the ability of a company to pay short-term obligations with its current assets.
The formula is Current Assets / Current Liabilities.
Gross Profit Margin: This percentage shows the relation between sales revenue and the cost of goods sold.
The formula is (Sales Revenue - Cost of Goods Sold) / Sales Revenue.
Net Profit Margin: This ratio shows the percentage of revenue that represents net income.
The formula is Net Income / Sales Revenue.
Inventory Turnover: This ratio shows how many times a company's inventory is sold and replaced over time.
The formula is Cost of Goods Sold / Average Inventory.
Days Sales in Inventory: It indicates the average number of days it takes to turn the inventory into sales.
The formula is 365 days / Inventory Turnover.
AR Turnover (Accounts Receivable Turnover): This measures how often the company collects its average accounts receivable.
The formula is Net Credit Sales / Average Accounts Receivable.
Days Sales in AR (Accounts Receivable): It shows the number of days it takes on average to collect the receivables. The formula is 365 days / AR Turnover.
Debt Ratio: This indicates the proportion of a company's assets that are financed by debt.
The formula is Total Debt / Total Assets.
Please note that to calculate these ratios accurately, you will need specific financial data from Macy's financial reports for 2021.