Question

h. Days of inventory. 1. Inventory turnover ratio. J. Average collection period Based on these ratios, did Macy's financial performance improve, weaken, or remain about the same from 2015 to 2016?

Answer 1

	2016	Calculation	2015	Calculation
Long-term Debt to equity ratio =Total Long-term Debt / Total shareholders equity	1.518278575	$6,562 / $4,322	1.644721373	$6,995/$4,253
Inventory Turnover ratio =Cost of goods sold / Closing Inventory	2.89	$15,621/$5,399	3.00	$16,496/$5,506
Days of Inventory =365 days / Inventory Turnover ratio	126.3 days	365 days / 2.89	121.7 days	365 days / 3.00
Accounts receivable turnover =Net sales / Closing accounts receivable	49.38	$25,778/$522	48.53	$27,079/$558
Average collection period =365 days/Accounts receivable turnover	7.4 days	365 days / 49.38	7.5 days	365 days / 48.53
Note:For calculation of Inventory turnover ratio and Accounts Receivable Turnover, closing inventory and closing accounts receivable have been taken respectively
This is because of the fact that Average inventory and Average Receivables can't be calculated for the last year and hence the comparison can't be made.
Based on the above data it is clear that macy's financila performance has weaken a little bit.