Macy’s Inc (M)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 382,000 | 1,730,000 | 2,350,000 | -4,475,000 | 970,000 |
| Total assets | US$ in thousands | 16,246,000 | 16,866,000 | 17,590,000 | 17,706,000 | 21,172,000 |
| Operating ROA | 2.35% | 10.26% | 13.36% | -25.27% | 4.58% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $382,000K ÷ $16,246,000K
= 2.35%
Macy's Inc operating return on assets (ROA) has exhibited significant fluctuations over the past five years. The operating ROA ranged from -25.27% in 2021 to 13.36% in 2022. The most recent data shows a relatively lower operating ROA of 2.35% in 2024. This implies that Macy's is generating 2.35 cents in operating income for every dollar of assets employed in the business.
The notable decrease in operating ROA from 2022 to 2024 raises concerns about Macy's ability to efficiently utilize its assets to generate operating profits. Further analysis of the company's operational efficiency and asset management practices would be necessary to understand the key drivers behind these fluctuations in operating ROA.
Peer comparison
Feb 3, 2024