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.