Macy’s Inc (M)
Debt-to-capital ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,706,000 | 2,555,000 | 3,254,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 4,137,000 | 4,082,000 | 3,621,000 | 2,553,000 | 6,377,000 |
| Debt-to-capital ratio | 0.40 | 0.38 | 0.47 | 0.00 | 0.00 |
February 3, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,706,000K ÷ ($2,706,000K + $4,137,000K)
= 0.40
The debt-to-capital ratio for Macy's Inc has shown fluctuations over the past five years. In February 2024, the ratio stands at 0.40, indicating that debt accounts for 40% of the company's total capital structure. This ratio is higher compared to the previous year, where it was 0.38.
In January 2022, the ratio spiked to 0.47, signifying a temporary increase in the proportion of debt in Macy's capital structure. Notably, in January 2021 and February 2020, the debt-to-capital ratio was 0.00, suggesting that there was either no debt or minimal debt relative to the capital employed in those years.
Overall, the trend in the debt-to-capital ratio for Macy's Inc reflects varying levels of leverage used by the company to finance its operations and investments over the years. A higher ratio indicates a greater reliance on debt, which can increase financial risk but also potentially amplify returns. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial health and risk profile.
Peer comparison
Feb 3, 2024