Macy’s Inc (M)

The Days of Sales Outstanding (DSO) metric for Macy's Inc has shown a decreasing trend over the past five years. In the most recent fiscal year, as of February 3, 2024, the DSO stood at 4.48 days, which indicates that, on average, it takes approximately 4.48 days for the company to collect its accounts receivable. This is a positive sign as it suggests that Macy's is efficient in converting its sales into cash.

Comparing this to the DSO figures from the previous years, we see a consistent improvement in the collection period. In January 2023, the DSO was 4.30 days, and in January 2022, it was slightly higher at 4.50 days. In contrast, in January 2021 and February 2020, the DSO figures were notably higher at 5.88 days and 6.10 days, respectively.

The decreasing trend in DSO indicates that Macy's has been successful in managing its accounts receivable and collecting payments from customers in a timelier manner over the years. This improved efficiency in collecting cash can positively impact the company's cash flow and working capital management. It also suggests that Macy's has effective credit and collection policies in place.

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Feb 3, 2024