Macy’s Inc (M)
Cash conversion cycle
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 118.69 | 67.11 | 112.55 | 101.75 | 65.27 |
| Days of sales outstanding (DSO) | days | — | 4.48 | — | — | 4.30 |
| Number of days of payables | days | — | 29.44 | — | — | 31.40 |
| Cash conversion cycle | days | 118.69 | 42.15 | 112.55 | 101.75 | 38.17 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 118.69 + — – —
= 118.69
Based on the provided data, Macy's Inc cash conversion cycle has shown significant fluctuations over the past few years.
As of January 28, 2023, the cash conversion cycle was 38.17 days, reflecting a relatively efficient cash conversion process. However, by January 31, 2023, the cycle had increased significantly to 101.75 days, indicating a slowdown in the company's ability to convert its investments in inventory and receivables into cash.
Subsequently, by January 31, 2024, the cash conversion cycle further deteriorated to 112.55 days, suggesting ongoing challenges in managing working capital effectively. However, there was a notable improvement by February 3, 2024, with the cycle decreasing to 42.15 days, signaling a more efficient cash conversion process.
Despite this improvement, the cash conversion cycle worsened again by January 31, 2025, reaching 118.69 days, implying a prolonged period between the company's cash outflows for inventory and cash inflows from sales.
Overall, the fluctuating trend in Macy's Inc cash conversion cycle raises concerns about the company's working capital management efficiency and underscores the importance of closely monitoring and optimizing its cash conversion processes to enhance liquidity and financial performance.
Peer comparison
Jan 31, 2025