Macy’s Inc (M)

Macy’s Inc solvency ratios show a consistent improvement in its debt management over the past five years. The debt-to-assets ratio has been relatively stable, indicating that Macy’s has maintained a healthy balance between debt and assets, with the ratio ranging from 0.15 to 0.18.

The debt-to-capital ratio has also improved over the years, with a decrease from 0.47 in 2022 to 0.40 in 2024. This suggests that Macy’s has been able to reduce its reliance on debt financing compared to its total capital, a positive sign for solvency.

Similarly, the debt-to-equity ratio has shown a declining trend from 0.90 in 2022 to 0.65 in 2024. This indicates that Macy’s has been decreasing its debt relative to its equity, which is favorable for long-term financial stability.

The financial leverage ratio has fluctuated over the period, ranging from 3.32 to 6.94. This ratio indicates Macy’s reliance on debt to support its operations and growth, with a lower ratio suggesting less financial risk.

Overall, Macy’s has shown improvement in its solvency ratios over the years, which reflects better debt management and a stronger financial position compared to previous periods.

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Coverage ratios

Interest coverage is a financial ratio that indicates a company's ability to pay interest on its outstanding debt. A higher interest coverage ratio signifies that the company is more capable of meeting its interest obligations. Looking at Macy's Inc's interest coverage over the past five fiscal years, we observe significant fluctuations:

1. In 2024, the interest coverage ratio decreased to 1.73, indicating that Macy's may have a lower capacity to cover its interest expenses compared to the previous year.

2. In 2023, the interest coverage ratio was relatively strong at 9.67, suggesting that Macy's had a comfortable cushion to pay off its interest obligations efficiently.

3. In 2022, the interest coverage ratio remained favorable at 8.29, reflecting Macy's ability to meet its interest payments comfortably.

4. In 2021, the interest coverage ratio was negative at -15.87, signaling that Macy's struggled to cover its interest expenses solely from its operating income.

5. In 2020, the interest coverage ratio improved to 4.55, indicating that Macy's was in a better position to handle its interest payments compared to the previous year.

Overall, Macy's interest coverage ratio has varied significantly over the years, reflecting changes in the company's financial health and ability to service its debt obligations. It is essential for investors and analysts to closely monitor this ratio to assess Macy's financial stability and debt repayment capacity.