Macy’s Inc (M)

Liquidity ratios

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
Current ratio 1.43 1.26 1.48 1.38 1.37 1.37 1.18 1.18 1.26 1.26 1.22 1.22 1.20 1.20 1.09 1.09 1.17 1.17 1.12 1.25
Quick ratio 0.29 0.05 0.17 0.19 0.30 0.23 0.06 0.11 0.10 0.17 0.13 0.18 0.18 0.24 0.05 0.08 0.06 0.11 0.12 0.32
Cash ratio 0.29 0.05 0.17 0.19 0.23 0.23 0.06 0.06 0.10 0.10 0.13 0.13 0.18 0.18 0.05 0.05 0.06 0.06 0.12 0.32

Current Ratio Analysis:

The current ratio of Macy's Inc has shown fluctuations over the past few years, ranging from 1.09 to 1.48. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio above 1 indicates a company has more current assets than current liabilities, which generally suggests good liquidity. Macy's Inc has maintained a current ratio above 1 for the most part, indicating a healthy ability to meet its short-term obligations.

Quick Ratio Analysis:

The quick ratio of Macy's Inc has also fluctuated significantly, ranging from 0.05 to 0.30. The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. A quick ratio below 1 may indicate potential liquidity issues, as inventory may not be easily converted to cash in the short term. Macy's Inc experienced some periods with a quick ratio below 1, suggesting a lower ability to cover immediate liabilities without relying on inventory sales.

Cash Ratio Analysis:

The cash ratio of Macy's Inc has shown similar fluctuations as the quick ratio, ranging from 0.05 to 0.29. The cash ratio is the most conservative liquidity ratio, focusing solely on the company's ability to cover current liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on other current assets. Macy's Inc's cash ratio has varied over time, reflecting changes in its cash position and potential impacts on liquidity.

In summary, Macy's Inc has displayed varying levels of liquidity strength based on its current, quick, and cash ratios over the analyzed periods. The company's ability to cover short-term liabilities with current assets has generally been adequate, but fluctuations in the quick and cash ratios suggest the need for a balanced approach to managing liquidity and working capital in the future.


Additional liquidity measure

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
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

The cash conversion cycle of Macy's Inc, which represents the time it takes for the company to convert its investments in inventory into cash flows from sales, has shown fluctuating trends over the specified periods.

The cycle started at 72.36 days on January 31, 2022, remained relatively stable until peaking at 133.44 days on October 31, 2022, indicating a significant delay in converting inventory into cash during that period.

However, there was a notable improvement as the cycle decreased to 44.38 days by January 28, 2023, reflecting a more efficient management of cash flows and inventory.

Despite this, the cycle increased gradually to 135.79 days by October 31, 2023, indicating a potential inefficiency in managing the company's working capital during that period.

Subsequent periods showed mixed results, with some improvement in efficiency as evidenced by cycles as low as 40.30 days in April 29, 2023, and as high as 118.70 days by January 31, 2025, suggesting fluctuations in the company's ability to manage its cash conversion cycle effectively.

Overall, Macy's Inc experienced varying levels of efficiency in converting its investments in inventory into cash flows from sales, with periods of improvement and challenges in managing its working capital effectively.