Macy’s Inc (M)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 118.70 | 131.19 | 81.45 | 87.35 | 73.71 | 98.80 | 135.79 | 135.07 | 92.66 | 81.30 | 78.42 | 77.64 | 70.81 | 77.20 | 133.44 | 133.24 | 94.69 | 75.26 | 89.72 | 72.36 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 3.99 | — | — | 5.11 | — | 4.43 | — | 3.35 | — | 4.32 | — | 3.29 | — | 2.76 | — | — |
| Number of days of payables | days | — | — | — | — | 32.33 | — | — | 77.70 | — | 38.95 | — | 40.70 | — | 37.15 | — | 80.34 | — | 37.38 | — | — |
| Cash conversion cycle | days | 118.70 | 131.19 | 81.45 | 87.35 | 45.36 | 98.80 | 135.79 | 62.48 | 92.66 | 46.78 | 78.42 | 40.30 | 70.81 | 44.38 | 133.44 | 56.18 | 94.69 | 40.63 | 89.72 | 72.36 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 118.70 + — – —
= 118.70
The cash conversion cycle of Macy’s Inc has experienced fluctuations over the reported periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
Analyzing the trend, we observe that Macy’s Inc had a relatively stable cash conversion cycle around 70-80 days in early 2022. However, the cycle increased significantly to over 130 days by October 2022, indicating potential inefficiencies in managing inventory, accounts receivable, and payables.
Subsequently, there was a noticeable improvement in the cash conversion cycle by January 2023, which dropped to around 40 days. This suggests that Macy’s may have streamlined its operations to convert its assets into cash more efficiently during this period.
The cycle then increased again in the following quarters, reaching over 130 days by October 2023. This fluctuation may hint at challenges in managing working capital effectively or delays in receiving payments from customers.
In the latest reported period (January 2025), the cash conversion cycle was around 118 days, indicating a prolonged time for Macy’s to convert its resources into cash flows. This prolonged cycle may raise concerns about liquidity and operational efficiency in the company's supply chain and sales processes.
In conclusion, Macy’s Inc should closely monitor and manage its cash conversion cycle to enhance liquidity, optimize working capital management, and improve overall operational efficiency.
Peer comparison
Jan 31, 2025