Macy’s Inc (M)
Interest coverage
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 294,000 | 1,693,000 | 2,122,000 | -4,506,000 | 933,000 |
| Interest expense | US$ in thousands | 170,000 | 175,000 | 256,000 | 284,000 | 205,000 |
| Interest coverage | 1.73 | 9.67 | 8.29 | -15.87 | 4.55 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $294,000K ÷ $170,000K
= 1.73
Macy’s Inc interest coverage ratio has shown fluctuations over the past five years. In the most recent fiscal year ending on February 3, 2024, the company's interest coverage ratio was 1.73, indicating that Macy’s generated operating income 1.73 times its interest expenses. This represents a significant decrease compared to the previous fiscal year, Jan 28, 2023, where the interest coverage ratio was 9.67, reflecting a stronger ability to cover interest payments.
In the fiscal years ending in January 2022 and January 2021, Macy’s interest coverage ratios were 8.29 and -15.87, respectively. The negative interest coverage ratio in Jan 30, 2021, suggests that Macy's operating income was insufficient to cover its interest expenses, raising concerns about the company's financial health during that period.
However, looking back to Feb 1, 2020, Macy’s interest coverage ratio was 4.55, showing an improvement from the prior year. Overall, Macy’s interest coverage has been volatile, with fluctuations that may indicate variability in profitability and ability to meet debt obligations through generating operating income.
Peer comparison
Feb 3, 2024