Profitability Metrics Macy's, Inc. (M), sells merchandise through company-owned retail stores and Internet website. Recent...
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Accounting
Profitability Metrics
Macy's, Inc. (M), sells merchandise through company-owned retail stores and Internet website. Recent financial information for Macy's is provided below (all numbers in millions).
Year 3
Year 2
Net income
$1,526
$1,486
Interest expense
864
804
Year 3
Year 2
Year 1
Total assets
$21,461
$21,620
$20,991
Total stockholders' equity
5,378
6,249
6,051
Assume the apparel industry's average return on total assets is 8.2%, and the average return on stockholders equity is 10.0% for Year 3.
a. Determine the return on total assets for Macys for Years 2 and 3. Round your percentage answers to one decimal place.
Year 3
%
Year 2
%
b. Determine the return on stockholders equity for Macys for Years 2 and 3. Round your percentage answers to one decimal place.
Year 3
%
Year 2
%
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