Macy’s Inc (M)

Short-term

Turnover ratios

Macy’s Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Inventory Turnover: Macy’s inventory turnover has fluctuated over the years, indicating changes in the efficiency of managing and selling inventory. A higher inventory turnover ratio signifies that inventory is being sold quickly, which is positive for the company in terms of liquidity.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently Macy’s collects its outstanding receivables. The data shows variation in this ratio over time, with some periods having no receivables turnover reported. A higher turnover ratio indicates that Macy’s is collecting its receivables quickly, which is favorable for its cash flow cycle.

3. Payables Turnover: Macy’s payables turnover ratio reflects how quickly the company pays its suppliers. The data shows inconsistent reporting of payables turnover, indicating fluctuations in the company’s payment practices. A higher turnover ratio suggests that Macy’s is efficiently managing its payables, thereby enhancing its working capital management.

4. Working Capital Turnover: This ratio assesses how effectively Macy’s is utilizing its working capital to generate sales revenue. The data reveals changes in the working capital turnover ratio over the periods, indicating shifts in the company's efficiency in utilizing its working capital. A higher turnover ratio implies that Macy’s is effectively utilizing its working capital to generate sales, which is a positive indicator of operational efficiency.

Overall, Macy’s Inc’s activity ratios reflect variations in the efficiency of managing inventory, receivables, payables, and working capital over different reporting periods. Analyzing these ratios can help stakeholders evaluate the company's operational performance and effectiveness in managing its resources.

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Average number of days

Based on the activity ratios provided for Macy's Inc, we can see the following trends:

1. Days of Inventory on Hand (DOH):
- Macy's DOH has shown significant fluctuations over the reported periods, ranging from 70.81 days to 135.79 days.
- There seems to be a notable increase in inventory holding from October 31, 2022, to January 31, 2023, where DOH jumped significantly from 133.44 days to 98.80 days.
- The company managed to reduce its inventory holding towards the end of the reporting periods, with DOH improving to 81.45 days on July 31, 2024.

2. Days of Sales Outstanding (DSO):
- The DSO data is incomplete as it shows "— days" for multiple reporting periods, indicating that exact figures are not available.
- However, it is observed that DSO started to show some values from July 30, 2022, to October 28, 2023, ranging from 2.76 days to 5.11 days.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables also includes "— days" for some reporting periods, implying that detailed information is missing.
- There is fluctuation in the period of payables from 37.15 days on January 28, 2023, to 77.70 days on October 28, 2023.
- Additionally, a notable decrease in the number of days of payables is observed on February 3, 2024, where it reduced to 32.33 days from the previous periods.

Overall, Macy's Inc appears to have managed its inventory and payables efficiently during the mentioned periods, with fluctuations in DOH and the number of days of payables. However, the incomplete data for DSO limits a comprehensive analysis of the company's receivables management.

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Long-term

The fixed asset turnover ratio indicates how efficiently Macy's Inc is generating sales revenue from its fixed assets. Looking at the data provided, we can see fluctuations in the fixed asset turnover ratio over the periods. The ratio ranged from a low of 2.40 to a high of 5.12, with some periods showing significant improvements in asset utilization efficiency.

For example, in July 30, 2022, the fixed asset turnover ratio spiked to 5.12, indicating a substantial increase in sales generated per unit of fixed assets. However, in subsequent periods, the ratio decreased, showing a potential dip in the efficiency of asset utilization. It's worth noting that in some periods, such as January 31, 2024, and April 30, 2024, the data is missing, which could indicate possible data reporting issues or changes in the company's operations during those periods.

In contrast, the total asset turnover ratio measures how effectively Macy's is utilizing all its assets to generate sales. The total asset turnover ratio also shows variability across the periods, ranging from 1.14 to 1.77. Generally, the total asset turnover ratio seems to be lower than the fixed asset turnover ratio, indicating that Macy's may not be as efficient in utilizing all its assets compared to just its fixed assets.

Overall, analyzing both the fixed asset turnover and total asset turnover ratios provides insights into Macy's efficiency in generating sales relative to its asset base. Understanding these ratios over time can help identify trends in asset utilization efficiency and potential areas for improvement in operational performance.