Macy’s Inc (M)
Pretax margin
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 124,000 | 1,518,000 | 1,866,000 | -4,790,000 | 728,000 |
| Revenue | US$ in thousands | 23,866,000 | 25,449,000 | 24,097,000 | 17,123,000 | 24,489,000 |
| Pretax margin | 0.52% | 5.96% | 7.74% | -27.97% | 2.97% |
February 3, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $124,000K ÷ $23,866,000K
= 0.52%
Macy’s Inc pretax margin has shown significant variability in recent years. In the most recent period ending on February 3, 2024, the pretax margin was 0.52%, indicating that the company retained 0.52 cents from every dollar of revenue before taxes.
Comparing this to the prior periods, there was a substantial decline from the pretax margin of 5.96% on January 28, 2023, and 7.74% on January 29, 2022. This decline suggests a decrease in profitability efficiency in converting revenue to pre-tax income.
The significant negative pretax margin of -27.97% on January 30, 2021, is an anomaly that may have resulted from extraordinary expenses or write-offs in that particular period. The subsequent recovery to a pretax margin of 2.97% on February 1, 2020, indicates a turnaround in the company's profitability.
Overall, Macy’s Inc pretax margin has fluctuated over the past five years, with the latest period showing a relatively low margin compared to earlier years. This suggests the company may be facing challenges in controlling costs or generating higher revenues to improve its profitability. Further analysis of the company's cost structure and revenue generation strategies would be beneficial to understand the factors driving these changes in pretax margin.
Peer comparison
Feb 3, 2024