Macy’s Inc (M)
Return on total capital
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 952,000 | 294,000 | 259,000 | 1,663,000 | 1,693,000 |
| Long-term debt | US$ in thousands | — | 2,706,000 | — | — | 2,555,000 |
| Total stockholders’ equity | US$ in thousands | 4,552,000 | 4,137,000 | 4,137,000 | 4,082,000 | 4,082,000 |
| Return on total capital | 20.91% | 4.30% | 6.26% | 40.74% | 25.51% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $952,000K ÷ ($—K + $4,552,000K)
= 20.91%
To analyze Macy’s Inc return on total capital, we will first calculate the change from year to year.
1. From January 28, 2023, to January 31, 2023, the return on total capital increased from 25.51% to 40.74%, indicating significant growth.
2. However, from January 31, 2023, to January 31, 2024, there was a sharp decline in the return on total capital from 40.74% to 6.26%, signifying a substantial decrease.
3. The trend continued to decline from February 3, 2024, to January 31, 2025, with a further decrease from 4.30% to 20.91%, showing a downward trajectory.
In summary, Macy’s Inc experienced fluctuating returns on total capital in the given years, with an initial surge followed by significant declines. This suggests variability in the efficiency of capital utilization over the period analyzed.
Peer comparison
Jan 31, 2025