Macy’s Inc (M)
Working capital turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,006,000 | 23,866,000 | 23,866,000 | 23,866,000 | 25,449,000 |
| Total current assets | US$ in thousands | 6,479,000 | 6,089,000 | 6,089,000 | 5,853,000 | 5,853,000 |
| Total current liabilities | US$ in thousands | 4,524,000 | 4,430,000 | 4,430,000 | 4,861,000 | 4,861,000 |
| Working capital turnover | 11.77 | 14.39 | 14.39 | 24.06 | 25.65 |
January 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $23,006,000K ÷ ($6,479,000K – $4,524,000K)
= 11.77
To analyze Macy's Inc working capital turnover, we consider the formula:
Working Capital Turnover = Net Sales / Average Working Capital
Using the provided data:
Working Capital Turnover for January 28, 2023, was 25.65
Working Capital Turnover for January 31, 2023, was 24.06
Working Capital Turnover for January 31, 2024, was 14.39
Working Capital Turnover for February 3, 2024, was 14.39
Working Capital Turnover for January 31, 2025, was 11.77
A higher working capital turnover indicates that the company is efficiently utilizing its working capital to generate sales.
Macy's working capital turnover has shown a decreasing trend over the years, declining from 25.65 in January 2023 to 11.77 in January 2025. This may suggest a less efficient management of working capital in generating sales.
Further analysis should be conducted to understand the underlying reasons for the decline in working capital turnover and whether it is due to changes in sales, working capital management practices, or other operational factors that may be impacting the company's efficiency in its use of working capital.
Peer comparison
Jan 31, 2025