Question

What is the inventory turnover rate of this company?

January 30, 2016 January 31, 2015 $ $ 2,246 424 1,109 558 5,506 479 7,652 7,616 3,897 514 897 20,576 5,417 493 8.580 7.800 3,743 496 711 21,330 $ $ S ASSETS Current Assets 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 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 (310.3 and 340.6 shares outstanding) Additional paid-in capital Accumulated equity Treasury stock Accumulated other comprehensive loss Total Macy's, Inc. Shareholders' Equity Noncontrolling interest Total Shareholders' Equity Total Liabilities and Shareholders' Equity 642 1,526 3,333 227 5,728 6,995 1,477 2,123 76 1,594 3,109 296 5,075 7,233 1,443 2,201 621 6,334 (1.665) (1.043) 4,250 1,048 7,340 (1.942) (1,072) 5,378 4.253 5,378 21,330 $ 20,576 S MACY'S, INC. CONSOLIDATED STATEMENTS OF INCOME (millions, except per share data) 2014 $ $ Net sales Cost of sales Gross margin Selling, general and administrative expenses 2015 27,079 (16,496) 10,583 (8,256) 28,105 (16,863) 11,242 (8,355) 2013 27,931 (16,725) 11,206 (8.440)

Answer 1

Average inventory (5506+5417)/2 = 5461.50 Inventory Turnover = Cost of Goods Sold/Average inventory 16,496/5461.50 3.02 times (rounded)