Macy’s Inc (M)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,866,000 | 25,449,000 | 24,097,000 | 17,123,000 | 24,489,000 |
| Property, plant and equipment | US$ in thousands | 5,308,000 | 5,913,000 | 5,665,000 | 5,940,000 | 6,633,000 |
| Fixed asset turnover | 4.50 | 4.30 | 4.25 | 2.88 | 3.69 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $23,866,000K ÷ $5,308,000K
= 4.50
To analyze Macy's Inc fixed asset turnover over the past five years, we can see an increasing trend from 3.69 in February 1, 2020, to 4.50 in February 3, 2024. This indicates that Macy’s has been more efficient in generating sales revenue relative to its investment in fixed assets.
The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate revenue. A higher ratio suggests that Macy’s is efficiently using its fixed assets to generate sales, which is a positive sign for investors and indicates better asset management.
The improvement in fixed asset turnover over the years can be attributed to operational efficiencies, strategic investments, or better utilization of existing fixed assets. It shows that Macy’s is becoming more productive in generating sales from its fixed assets, reflecting positively on the company's operational performance and management of its fixed asset base.
Overall, the increasing trend in Macy's fixed asset turnover ratio signals improved efficiency and effectiveness in generating revenue from its fixed assets, which is a favorable indication for the company's financial health and operational performance.
Peer comparison
Feb 3, 2024