Macy’s Inc (M)

Days of Inventory on Hand (DOH) is a measure that indicates the average number of days it takes for a company to sell its inventory. A lower DOH value usually suggests that the company is selling its inventory more quickly, which can be a positive indicator of inventory management efficiency.

Analyzing Macy’s Inc DOH over the past five years, we observe fluctuations in this ratio. In the most recent fiscal year, as of February 3, 2024, Macy’s had an average of 67.11 days of inventory on hand. Compared to the previous year, the DOH has slightly increased from 65.27 days as of January 28, 2023. The increase in DOH may indicate that Macy’s is holding onto its inventory for a slightly longer period, which could tie up capital and potentially lead to higher carrying costs.

Looking back over the past five years, there have been variations in the DOH ratio for Macy’s. In fiscal year 2020, Macy’s had the highest DOH of 76.64 days, indicating that the company took longer to sell its inventory that year. On the other hand, in fiscal year 2021, Macy’s managed to lower its DOH to 60.22 days, indicating more efficient inventory turnover that year. However, in fiscal year 2022, the DOH increased again to 68.65 days before slightly decreasing in the most recent fiscal year.

Overall, Macy’s DOH has shown some fluctuations over the past five years, which can indicate changes in the company's inventory management efficiency. It may be beneficial for Macy’s to closely monitor its DOH and implement strategies to optimize inventory turnover to improve cash flow and profitability.

Peer comparison

Feb 3, 2024