Macy’s Inc (M)
Total 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 |
| Total assets | US$ in thousands | 16,246,000 | 16,866,000 | 17,590,000 | 17,706,000 | 21,172,000 |
| Total asset turnover | 1.47 | 1.51 | 1.37 | 0.97 | 1.16 |
February 3, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $23,866,000K ÷ $16,246,000K
= 1.47
The total asset turnover ratio for Macy’s Inc has fluctuated over the past five years. It peaked at 1.51 in Jan 28, 2023, indicating that the company generated $1.51 in revenue for every $1 of total assets it had. This suggests efficient utilization of assets to generate sales.
However, the ratio decreased to 1.37 on Jan 29, 2022, before dropping to 0.97 on Jan 30, 2021. This significant decline may indicate a less effective use of assets to generate sales during these periods.
Subsequently, there was an improvement in the total asset turnover ratio to 1.16 on Feb 1, 2020. This increase suggests that the company may have enhanced its asset utilization efficiency to generate sales.
Overall, Macy’s Inc has shown fluctuations in its total asset turnover ratio over the years, indicating varying levels of efficiency in converting assets into revenue. The company should continue to monitor and manage this ratio to ensure optimal asset utilization and revenue generation.
Peer comparison
Feb 3, 2024