Macy’s Inc (M)
Profitability ratios
Return on sales
Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
---|---|---|---|---|---|
Gross profit margin | 40.28% | 0.62% | 40.74% | 41.90% | 1.97% |
Operating profit margin | 3.95% | 1.60% | 1.60% | 7.25% | 6.80% |
Pretax margin | 3.32% | 0.52% | 0.52% | 6.36% | 5.96% |
Net profit margin | 2.53% | 0.44% | 0.44% | 4.93% | 4.62% |
Macy's Inc has exhibited fluctuations in its profitability margins over the years based on the provided data. The gross profit margin, a key indicator of a company's efficiency in generating profit from its revenue after accounting for the cost of goods sold, decreased significantly from 41.90% on January 31, 2023, to 0.62% on February 3, 2024. However, it showed a recovery to 40.28% by January 31, 2025.
In terms of operating profit margin, which reflects the proportion of revenue remaining after accounting for operating expenses, there was a decline from 7.25% on January 31, 2023, to 1.60% on January 31, 2024, and February 3, 2024. The margin improved slightly to 3.95% on January 31, 2025.
The pretax margin, representing the company's profitability before taxes, also experienced a notable decrease from 6.36% on January 31, 2023, to 0.52% on January 31, 2024, and February 3, 2024. However, it recovered to 3.32% by January 31, 2025.
Finally, the net profit margin, which indicates the company's profitability after all expenses have been deducted, declined from 4.93% on January 31, 2023, to 0.44% on January 31, 2024, and February 3, 2024. It showed an improvement to 2.53% by January 31, 2025.
Overall, these profitability ratios reflect Macy's Inc's performance in generating profits relative to its revenue and expenses, showcasing fluctuating trends over the analyzed periods.
Return on investment
Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
---|---|---|---|---|---|
Operating return on assets (Operating ROA) | 5.54% | 2.35% | 2.35% | 10.26% | 10.26% |
Return on assets (ROA) | 3.55% | 0.65% | 0.65% | 6.98% | 6.98% |
Return on total capital | 20.91% | 4.30% | 6.26% | 40.74% | 25.51% |
Return on equity (ROE) | 12.79% | 2.54% | 2.54% | 28.83% | 28.83% |
Based on the provided data, let's analyze Macy's Inc profitability ratios:
1. Operating Return on Assets (Operating ROA):
- In January 28 and 31, 2023, the Operating ROA was 10.26%.
- As of January 31, 2024 and February 3, 2024, the Operating ROA dropped to 2.35% and remained consistent.
- By January 31, 2025, the Operating ROA improved to 5.54%.
2. Return on Assets (ROA):
- The ROA was 6.98% in January 28 and 31, 2023.
- It significantly decreased to 0.65% on January 31, 2024 and February 3, 2024.
- However, by January 31, 2025, the ROA increased to 3.55%.
3. Return on Total Capital:
- A notable decline was observed in the Return on Total Capital from 25.51% on January 28, 2023, to 4.30% on February 3, 2024.
- The trend improved slightly to 20.91% by January 31, 2025.
4. Return on Equity (ROE):
- The ROE was consistent at 28.83% on January 28 and 31, 2023.
- Subsequently, the ROE dropped to 2.54% on January 31, 2024 and remained the same on February 3, 2024.
- The ROE recovered by January 31, 2025, reaching 12.79%.
In conclusion, Macy's Inc experienced fluctuations in profitability ratios over the analyzed periods. The company showed improvements in its Operating ROA and ROA in 2025 compared to 2024 but faced a decline in Return on Total Capital during the same timeframe. Return on Equity also saw a significant dip in 2024 with a partial recovery in 2025. Understanding these ratios helps to assess the company's operational efficiency, asset utilization, and profitability performance.