Macy’s Inc (M)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,034,000 | 862,000 | 1,712,000 | 1,679,000 | 685,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 293,000 | 300,000 | 297,000 | 276,000 | 409,000 |
| Total current liabilities | US$ in thousands | 4,430,000 | 4,861,000 | 5,416,000 | 5,357,000 | 5,750,000 |
| Quick ratio | 0.30 | 0.24 | 0.37 | 0.36 | 0.19 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,034,000K
+ $—K
+ $293,000K)
÷ $4,430,000K
= 0.30
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position as it demonstrates the company's capacity to pay off its current liabilities without relying on the sale of inventory.
Analyzing Macy's Inc quick ratio over the past five years reveals fluctuating levels. In the most recent fiscal year as of February 3, 2024, Macy's Inc had a quick ratio of 0.30, indicating that the company had $0.30 of readily available assets for each dollar of current liabilities. This represents an improvement over the previous year, where the quick ratio was 0.24.
Comparing the current ratio to two years ago, we can see that the quick ratio was 0.37 as of January 29, 2022, and 0.36 as of January 30, 2021. These ratios suggest a relatively higher liquidity position compared to the most recent year.
Conversely, in the fiscal years of January 29, 2022, and February 1, 2020, Macy's Inc had quick ratios of 0.37 and 0.19, respectively. The quick ratio of 0.19 in 2020 indicates a lower liquidity position where the company had only $0.19 of quick assets for each dollar of current liabilities.
Overall, the trend in Macy's Inc quick ratio fluctuates, with the ratio varying significantly over the past five years. It is essential for the company to maintain a balance between its liquid assets and current liabilities to ensure it can meet its short-term obligations effectively.
Peer comparison
Feb 3, 2024