Macy’s Inc (M)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,246,000 | 16,866,000 | 17,590,000 | 17,706,000 | 21,172,000 |
| Total stockholders’ equity | US$ in thousands | 4,137,000 | 4,082,000 | 3,621,000 | 2,553,000 | 6,377,000 |
| Financial leverage ratio | 3.93 | 4.13 | 4.86 | 6.94 | 3.32 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,246,000K ÷ $4,137,000K
= 3.93
The financial leverage ratio of Macy's Inc has fluctuated over the past five years. The ratio was 3.32 in February 2020, increased to 6.94 in January 2021, and then decreased to 4.86 in January 2022. Subsequently, it decreased further to 4.13 in January 2023, and most recently stood at 3.93 in February 2024.
A high financial leverage ratio indicates that a company relies more on debt financing, which can amplify returns but also increases financial risk. Macy's saw a significant spike in its financial leverage ratio in January 2021, suggesting a higher proportion of debt in its capital structure at that time. However, the ratio has since decreased, indicating a potential reduction in the company's reliance on debt over the past few years.
Overall, Macy's has shown varying levels of financial leverage over the last five years, with the most recent ratio of 3.93 in February 2024 potentially indicating a more balanced mix of debt and equity in its capital structure compared to the higher ratios seen in previous years.
Peer comparison
Feb 3, 2024