Macy’s Inc (M)
Working capital 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 current assets | US$ in thousands | 6,089,000 | 5,853,000 | 6,758,000 | 6,184,000 | 6,810,000 |
| Total current liabilities | US$ in thousands | 4,430,000 | 4,861,000 | 5,416,000 | 5,357,000 | 5,750,000 |
| Working capital turnover | 14.39 | 25.65 | 17.96 | 20.70 | 23.10 |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $23,866,000K ÷ ($6,089,000K – $4,430,000K)
= 14.39
Macy’s Inc has demonstrated varying levels of efficiency in managing its working capital over the past five years. The working capital turnover ratio indicates how effectively the company is utilizing its working capital to generate revenue.
In February 2024, Macy’s working capital turnover ratio was 14.39, reflecting a decrease from the previous year's ratio of 25.65. This decline suggests a potential inefficiency in utilizing its working capital to generate sales revenue compared to the previous year. However, it's important to note that working capital turnover can be influenced by various factors such as sales volume, inventory management, and payment cycles.
Despite the decrease in 2024, Macy’s was more efficient in managing its working capital compared to the ratios in 2022 (17.96), 2021 (20.70), and 2020 (23.10). This indicates that in the current year, Macy’s may be able to generate more revenue per dollar of working capital, even though there was a decline from the previous year.
Overall, Macy’s working capital turnover has shown variability over the years, and it is essential for the company to continually monitor and optimize its working capital management to enhance operational efficiency and financial performance.
Peer comparison
Feb 3, 2024