Macy’s Inc (M)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,137,000 | 4,082,000 | 3,621,000 | 2,553,000 | 6,377,000 |
| ROE | 2.54% | 28.83% | 39.49% | -154.48% | 8.84% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $105,000K ÷ $4,137,000K
= 2.54%
Macy's Inc's Return on Equity (ROE) has been fluctuating significantly over the past five years. In 2024, the ROE stood at 2.54%, reflecting a relatively low profitability compared to previous years. This decrease in ROE suggests a decline in the company's ability to generate profits from shareholders' equity.
In contrast, the ROE was notably higher in 2023 and 2022, at 28.83% and 39.49% respectively. These figures indicate that Macy's was more efficient in utilizing shareholders' equity to generate profits during those years, showcasing a strong performance in terms of profitability and efficiency.
However, in 2021, Macy's ROE plummeted to -154.48%, indicating a significant loss in profitability relative to shareholders' equity. This negative ROE suggests that the company's net income was insufficient to cover the equity investment, raising concerns about financial health and performance.
The ROE in 2020 rebounded to 8.84%, showing a recovery from the previous year's negative value but still lower than the levels observed in 2022 and 2023. Overall, Macy's ROE has been volatile, highlighting the company's changing performance and profitability trends over the past five years.
Peer comparison
Feb 3, 2024