Macy’s Inc (M)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 383,000 | 1,130,000 | 1,236,000 | 1,511,000 | 1,730,000 | 2,069,000 | 2,400,000 | 2,598,000 | 2,350,000 | 1,736,000 | 1,086,000 | -142,000 | -4,476,000 | -4,318,000 | -4,139,000 | -3,353,000 | 969,000 | 1,460,000 | 1,555,000 | 1,703,000 |
| Total assets | US$ in thousands | 16,246,000 | 18,111,000 | 16,304,000 | 16,868,000 | 16,866,000 | 18,230,000 | 16,342,000 | 16,972,000 | 17,590,000 | 18,279,000 | 18,417,000 | 18,082,000 | 17,706,000 | 19,214,000 | 17,614,000 | 18,581,000 | 21,172,000 | 22,547,000 | 20,741,000 | 21,296,000 |
| Operating ROA | 2.36% | 6.24% | 7.58% | 8.96% | 10.26% | 11.35% | 14.69% | 15.31% | 13.36% | 9.50% | 5.90% | -0.79% | -25.28% | -22.47% | -23.50% | -18.05% | 4.58% | 6.48% | 7.50% | 8.00% |
February 3, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $383,000K ÷ $16,246,000K
= 2.36%
Operating return on assets (Operating ROA) is a financial ratio that indicates the efficiency of a company in generating operating income from its assets. Macy’s Inc's Operating ROA has exhibited fluctuations over the past several quarters.
From May 2019 to October 2021, Macy’s Inc saw a general upward trend in Operating ROA, with the ratio increasing from 6.48% in February 2020 to a peak of 15.31% in April 2022. This indicates that the company was effectively utilizing its assets to generate operating income during this period.
However, there was a significant decline in Operating ROA from April 2022 to January 2023, reaching a low of -25.28% in January 2023, indicating that the company's operating income was insufficient to cover the assets employed. This decline could be attributed to various factors such as decreased sales, increased expenses, or asset impairment.
Subsequently, there was a partial recovery in Operating ROA from January 2023 to February 2024, with the ratio gradually increasing from -25.28% to 2.36%. Although there has been an improvement, the Operating ROA remains below the levels seen in the earlier periods of positive growth.
In conclusion, Macy’s Inc's Operating ROA has shown volatility and a mix of positive and negative trends in recent quarters, reflecting fluctuations in the company's operational efficiency and asset utilization. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial performance and sustainability.
Peer comparison
Feb 3, 2024