Macy’s Inc (M)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,034,000 | 364,000 | 438,000 | 603,000 | 862,000 | 326,000 | 300,000 | 672,000 | 1,712,000 | 316,000 | 2,137,000 | 1,798,000 | 1,679,000 | 1,551,000 | 1,395,000 | 1,523,000 | 685,000 | 301,000 | 674,000 | 737,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,750,000 | 1,750,000 | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,430,000 | 6,014,000 | 4,184,000 | 4,782,000 | 4,861,000 | 6,743,000 | 4,708,000 | 5,543,000 | 5,416,000 | 6,671,000 | 6,700,000 | 5,518,000 | 5,357,000 | 6,651,000 | 4,854,000 | 5,772,000 | 5,750,000 | 6,479,000 | 4,439,000 | 5,019,000 |
| Cash ratio | 0.23 | 0.06 | 0.10 | 0.13 | 0.18 | 0.05 | 0.06 | 0.12 | 0.32 | 0.05 | 0.32 | 0.33 | 0.31 | 0.50 | 0.65 | 0.26 | 0.12 | 0.05 | 0.15 | 0.15 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,034,000K
+ $—K)
÷ $4,430,000K
= 0.23
The cash ratio for Macy's Inc has shown fluctuations over the past few years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
Looking at the trend, the cash ratio has ranged from a low of 0.05 to a high of 0.65. A higher cash ratio indicates that Macy's has a larger proportion of cash and cash equivalents relative to its current liabilities, suggesting a stronger ability to cover short-term obligations.
In the most recent period, as of February 3, 2024, Macy's cash ratio is 0.23, which indicates that the company has $0.23 of cash and cash equivalents for every $1 of current liabilities. This suggests that Macy's has improved its liquidity position compared to the previous period.
It's important to note that while a high cash ratio can signal financial strength, excessively high levels of cash might imply that the company is not efficiently utilizing its resources. On the other hand, a low cash ratio could indicate potential liquidity issues and the need to manage working capital more effectively.
Overall, Macy's should aim to maintain a healthy balance between cash reserves and investments to ensure it can meet its short-term obligations while also maximizing returns on its assets.
Peer comparison
Feb 3, 2024