Macy’s Inc (M)
Financial leverage ratio
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,246,000 | 18,111,000 | 16,304,000 | 16,868,000 | 16,866,000 | 18,230,000 | 16,342,000 | 16,972,000 | 17,590,000 | 18,279,000 | 18,417,000 | 18,082,000 | 17,706,000 | 19,214,000 | 17,614,000 | 18,581,000 | 21,172,000 | 22,547,000 | 20,741,000 | 21,296,000 |
| Total stockholders’ equity | US$ in thousands | 4,137,000 | 4,144,000 | 4,210,000 | 4,170,000 | 4,082,000 | 3,475,000 | 3,531,000 | 3,278,000 | 3,621,000 | 3,008,000 | 3,146,000 | 2,675,000 | 2,553,000 | 2,243,000 | 2,324,000 | 2,697,000 | 6,377,000 | 6,057,000 | 6,315,000 | 6,323,000 |
| Financial leverage ratio | 3.93 | 4.37 | 3.87 | 4.05 | 4.13 | 5.25 | 4.63 | 5.18 | 4.86 | 6.08 | 5.85 | 6.76 | 6.94 | 8.57 | 7.58 | 6.89 | 3.32 | 3.72 | 3.28 | 3.37 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,246,000K ÷ $4,137,000K
= 3.93
The financial leverage ratio for Macy's Inc has exhibited fluctuations over the past several quarters. The ratio indicates the company's level of financial leverage, or the extent to which it relies on debt financing compared to equity financing.
From the data provided, we observe that the financial leverage ratio has ranged from a low of 3.28 to a high of 8.57. The highest ratio of 8.57 was recorded on August 1, 2020, suggesting a significant reliance on debt to finance its operations at that time. On the other hand, the lowest ratio of 3.28 was reported on May 4, 2019, indicating a lower level of debt compared to equity in the capital structure.
Throughout the periods under review, the financial leverage ratio has shown some variability, with peaks and troughs. A higher financial leverage ratio typically indicates a higher level of financial risk, as the company has more debt obligations to meet. Conversely, a lower ratio suggests a more conservative capital structure with less reliance on debt to fund operations.
It is essential for investors and stakeholders to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage its financial risk effectively. Additionally, understanding the factors driving fluctuations in the ratio can provide insights into the company's financial health and strategic decisions regarding its capital structure.
Peer comparison
Feb 3, 2024