Macy’s Inc (M)
Return on assets (ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 105,000 | 1,177,000 | 1,430,000 | -3,944,000 | 564,000 |
| Total assets | US$ in thousands | 16,246,000 | 16,866,000 | 17,590,000 | 17,706,000 | 21,172,000 |
| ROA | 0.65% | 6.98% | 8.13% | -22.27% | 2.66% |
February 3, 2024 calculation
ROA = Net income ÷ Total assets
= $105,000K ÷ $16,246,000K
= 0.65%
Macy's Inc experienced a declining trend in return on assets (ROA) over the past five years. The ROA decreased from -22.27% in January 2021 to 0.65% in February 2024. This signifies that the company's ability to generate profits from its assets has improved, moving from negative territory to a positive ROA. However, the current ROA of 0.65% is significantly lower compared to the ROA of 8.13% in January 2022 and 6.98% in January 2023, indicating a downward trend in asset efficiency. The company needs to focus on optimizing its asset utilization to enhance profitability and create more value for its shareholders.
Peer comparison
Feb 3, 2024