Macy’s Inc (M)
Cash conversion cycle
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 67.11 | 95.11 | 64.30 | 71.00 | 65.27 | 97.31 | 70.34 | 76.11 | 68.64 | 103.06 | 75.18 | 77.35 | 61.01 | 78.16 | 52.22 | 68.43 | 77.32 | 108.98 | 75.03 | 82.28 |
| Days of sales outstanding (DSO) | days | 4.48 | 4.41 | 4.36 | 3.71 | 4.30 | 2.92 | 3.16 | 3.40 | 4.50 | 3.48 | 3.85 | 3.96 | 5.81 | 3.56 | 3.32 | 2.79 | 6.03 | 2.56 | 3.47 | 3.42 |
| Number of days of payables | days | 29.44 | 54.72 | 30.80 | 37.22 | 31.40 | 58.68 | 34.94 | 44.00 | 34.80 | 63.71 | 43.31 | 46.54 | 31.98 | 49.64 | 20.54 | 30.53 | 25.07 | 51.47 | 24.97 | 29.18 |
| Cash conversion cycle | days | 42.16 | 44.81 | 37.86 | 37.49 | 38.17 | 41.55 | 38.56 | 35.51 | 38.34 | 42.83 | 35.72 | 34.77 | 34.85 | 32.08 | 35.00 | 40.70 | 58.28 | 60.06 | 53.52 | 56.52 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 67.11 + 4.48 – 29.44
= 42.16
The cash conversion cycle for Macy's Inc fluctuated over the past few quarters, indicating variations in their working capital management efficiency. The cycle represents the time taken to convert company resources into cash flow through operating activities.
The trend reveals that Macy's Inc improved its cash conversion cycle efficiency during the second and third quarters of fiscal year 2024 compared to the previous quarters. The company reduced its cycle duration to 37.86 days in July 2023, a notable improvement from the 60.06 days in August 2019.
However, in subsequent quarters, the cash conversion cycle extended slightly, reaching 42.16 days in February 2024. This uptick suggests a potential increase in the time taken to collect receivables or sell inventory, impacting the company's cash flow.
Macy's Inc should focus on optimizing their accounts receivable and inventory management to ensure a shorter cash conversion cycle, which can enhance liquidity and overall financial health. Continuous monitoring and adjustment of working capital processes are crucial for sustaining efficiency in the cash conversion cycle over time.
Peer comparison
Feb 3, 2024