Question

Macy's, Inc. (NYSE:M) > Financials > Key Stats
In Millions of the trading currency, except per share items.	Currency:	Trading Currency		Conversion:	Today's Spot Rate
	Order:	Latest on Right		Units:	S&P Capital IQ (Default)
	Decimals:	Capital IQ (Default)		Dilution:	Basic
Key Financials¹
For the Fiscal Period Ending	12 months Jan-30-2016A	12 months Jan-28-2017A	12 months Feb-03-2018A	12 months Feb-02-2019A	LTM² 12 months Nov-02-2019A
Currency	USD	USD	USD	USD	USD
Total Revenue	27,079.0	26,564.0	25,641.0	25,739.0	25,449.0
Net Income	1,072.0	627.0	1,566.0	1,108.0	964.0
Total Assets	20,576.0	19,851.0	19,583.0	19,194.0	22,547.0
Total Liabilities	16,323.0	15,529.0	13,850.0	12,758.0	16,490.0
Total Equity	4,253.0	4,322.0	5,733.0	6,436.0	6,057.0
Total Debt	7,802.0	7,045.0	6,072.0	4,931.0	7,816.0

1. What is the ROA in last 5 years and the ROE in last 5 years?
2. What is theRevenue and revenue growth in last 5 years?
3. What is the Profit (net income) and profit growth in last 5 years?
4. What is the Financial leverage and financial leverage growth in last 5 years?
5. Any other financial information?

Answer 1

ROA and ROE

return on asset is the total profit the company generates as a percentage of value of assets.

ROA = (Net Income/ Total Value of Assets)*100

return on equity is how effective the management is in using a a company's asset to create profit

ROE = (Net Income/Average Shareholder Equity)*100

YEAR	NET INCOME	TOTAL ASSET	AVG SHAREHOLDER EQUITY	ROA	ROE
2016	1072	20576	4253	5.2%	25.2%
2017	627	19851	4322	3.16%	14.5%
2018	1566	19583	5733	8%	27.32%
2019	1108	19194	6436	5.77%	17.22%
2019 (LTM)	964	20547	6057	4.7%	4.69%

Revenue and revenue growth

Revenue for the period are given

revenue growth is the percentage change in the revenue from previous year

revenue growth = [(current period revenue - previous year revenue )/ previous year revenue ]*100

YEAR	Current PERIOD REVENUE	PREVIOUS PERIOD REVENUE	DIFFERENCE	REVENUE GROWTH
2016	27079	-	-	-
2017	26564	27079	(515)	-1.9%
2018	25641	26564	(923)	-3.47%
2019	25739	25641	98	0.38%
2019 LTM	25449	25739	(290)	-1.13%
2019-2016	25739	27079	(1340)	-4.94

there is a drop of 4.94 percent revenue as compared to 2016 period

net profit and profit growth in 5 years

net profit for the years are given it is the net amount the company earns after deducted its expenses.

profit growth is the percentage change in the profit in two given period of time that is current period and previous period.

profit growth = [(current year net profit - previous year net profit)/previous year net profit ]*100

YEAR	Current PERIOD NET PROFIT	PREVIOUS PERIOD NET PROFIT	DIFFERENCE	PROFIT GROWTH
2016	1072	-
2017	627	1072	(445)	-41.51%
2018	1566	627	939	149.76%
2019	1108	1566	(458)	-29.25%
2019 LTM	964	1108	(144)	-14.94%
2019-2016	964	1072	(108)	-10%

the net profit in the last 5 years has decreased by 10 % when we compare 2016 to 2019 LTM

Financial leverage and Financial leverage growth in 5 years

Financial leverage is the use of debts to buy assets. It increases the return on equity

Financial leverage = Total Debt/Total Equity

Financial leverage growth is the change in the financial leverage during two period of time.

Financial leverage growth = [(Current year financial leverage - previous year financial leverage )/previous year financial leverage ]*100

YEAR	TOTAL DEBT	TOTAL EQUITY	CURRENT FINANCIAL LEVERAGE	PREVIOUS YEAR FINANCIAL LEVERAGE	DIFFERENCE	FINANCIAL LEVERAGE GROWTH
2016	4253	7802	0.56	-
2017	4322	7045	0.61	0.56	0.05	8.93%
2018	5733	6072	0.94	0.61	0.33	54%
2019	6436	4931	1.3	0.94	0.36	38.29%
2019 LTM	6057	7816	0.77	1.3	(0.53)	40.77%
2016-2019 LTM	6057	7816	0.77	0.56	0.21	37.5%

THE FINANCIAL LEVERAGE HAS INCREASED BY 37.5 WHEN COMPARED TO 2016.