Macy’s Inc (M)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 0.62% | 1.97% | 3.29% | -33.58% | -0.90% |
| Operating profit margin | 1.60% | 6.80% | 9.75% | -26.13% | 3.96% |
| Pretax margin | 0.52% | 5.96% | 7.74% | -27.97% | 2.97% |
| Net profit margin | 0.44% | 4.62% | 5.93% | -23.03% | 2.30% |
Macy’s Inc's profitability ratios have exhibited fluctuating trends over the past five years. The gross profit margin has shown a significant decline from 3.29% in January 2022 to 0.62% in February 2024. This indicates that Macy’s profitability on sales has decreased, possibly due to factors such as increased costs or pricing pressures.
Similarly, the operating profit margin has shown a downward trend from 9.75% in January 2022 to 1.60% in February 2024. This suggests that Macy’s is experiencing challenges in controlling its operating expenses relative to its revenue generation.
The pretax margin has also followed a decreasing pattern, indicating a decline in profitability before accounting for taxes. The net profit margin has shown a similar trend, with a decline from 5.93% in January 2022 to 0.44% in February 2024. This implies that Macy's is facing challenges in generating profits after accounting for all expenses, including taxes.
Overall, Macy’s Inc's profitability ratios indicate a concerning trend of declining profitability over the past few years, highlighting the need for strategic measures to enhance operational efficiency and improve financial performance.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.35% | 10.26% | 13.36% | -25.27% | 4.58% |
| Return on assets (ROA) | 0.65% | 6.98% | 8.13% | -22.27% | 2.66% |
| Return on total capital | 4.30% | 25.51% | 30.87% | -176.50% | 14.63% |
| Return on equity (ROE) | 2.54% | 28.83% | 39.49% | -154.48% | 8.84% |
Macy's Inc's profitability ratios have shown significant fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA): Macy's Operating ROA has declined from 13.36% in 2022 to 2.35% in 2024, indicating a decrease in the company's ability to generate operating income from its assets.
2. Return on Assets (ROA): Macy's ROA has also decreased from 8.13% in 2022 to 0.65% in 2024, suggesting a decline in the company's overall profitability relative to its total assets.
3. Return on Total Capital: The return on total capital has seen a significant decline, dropping from 30.87% in 2022 to 4.30% in 2024, indicating a decrease in the company's ability to generate returns from its total capital investments.
4. Return on Equity (ROE): Macy's ROE has shown fluctuations, with a significant decrease from 39.49% in 2022 to 2.54% in 2024, indicating a decline in the company's ability to generate returns for its shareholders.
Overall, Macy's profitability ratios reflect a challenging operating environment with decreasing returns on assets, total capital, and equity over the past few years. It is important for the company to address these declines and implement strategies to improve profitability and efficiency.