Macy’s Inc (M)
Number of days of payables
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 12.40 | 11.62 | 10.49 | 11.56 | 14.69 | |
| Number of days of payables | days | 29.44 | 31.40 | 34.80 | 31.56 | 24.85 |
February 3, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.40
= 29.44
Macy's Inc has shown fluctuating trends in its number of days of payables over the past five years. As of February 3, 2024, the number of days of payables stood at 29.44 days, a decrease from the previous year's figure of 31.40 days. This indicates that Macy's has been managing its payables more efficiently, taking fewer days to settle its outstanding obligations to suppliers and vendors.
Comparing the current figure to the data from the previous years, Macy's has shown a decreasing trend in the number of days of payables since January 29, 2022, when it reached 34.80 days. This suggests that the company has been optimizing its cash flow by extending its payment periods or negotiating better terms with its suppliers.
However, it is essential for Macy's to strike a balance in managing its payables effectively to maintain good relationships with its suppliers while also maximizing its cash flow efficiency. Monitoring this ratio over time can provide insights into the company's financial health and operational effectiveness in handling its payables.
Peer comparison
Feb 3, 2024