Macy’s Inc (M)

Macy's Inc's liquidity ratios provide key insights into its short-term financial health. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has shown a steady improvement over the years. It stood at 1.20 in both January 2023 and January 2024 and increased to 1.37 in January 2025. This indicates that Macy's has improved its liquidity position over time and is in a better position to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a positive trend. While it was relatively low in January 2023 at 0.18, it increased to 0.29 in January 2025. This suggests that Macy's has been able to increase its ability to meet short-term obligations without relying on selling off inventory.

Lastly, the cash ratio, which focuses specifically on the company's ability to cover current liabilities with only cash and cash equivalents, has consistently improved. It was 0.18 in January 2023 and January 31, 2023, and rose to 0.29 in January 2025. This indicates that Macy's has a higher proportion of cash on hand to cover its immediate liabilities, which is a positive signal for its financial stability.

Overall, Macy's Inc's liquidity ratios demonstrate a favorable trend, with improvements seen across the current ratio, quick ratio, and cash ratio. These ratios indicate that Macy's has enhanced its ability to meet short-term obligations and has strengthened its liquidity position over the years.

---

Additional liquidity measure

The cash conversion cycle of Macy's Inc has shown fluctuations over the years based on the provided data. As of January 28, 2023, Macy's cash conversion cycle was at 38.17 days, indicating a relatively efficient cycle. However, by January 31, 2023, the cycle increased significantly to 101.75 days, suggesting delays in converting inventory and receivables into cash.

Throughout the following years, Macy's cash conversion cycle continued to fluctuate. By January 31, 2024, the cycle further extended to 112.55 days, reflecting potential challenges in managing working capital effectively. Nevertheless, by February 3, 2024, there was a notable improvement as the cycle decreased to 42.15 days, signaling a more efficient conversion of cash.

As of January 31, 2025, Macy's cash conversion cycle increased again to 118.69 days, indicating potential liquidity challenges and delays in converting assets into cash. Overall, the trend in Macy's cash conversion cycle demonstrates variability in efficiently managing the company's working capital and highlights the importance of monitoring and optimizing cash flow processes.