Macy’s Inc (M)
Interest coverage
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 952,000 | 294,000 | 259,000 | 1,663,000 | 1,693,000 |
| Interest expense | US$ in thousands | 115,000 | 170,000 | 135,000 | 162,000 | 175,000 |
| Interest coverage | 8.28 | 1.73 | 1.92 | 10.27 | 9.67 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $952,000K ÷ $115,000K
= 8.28
Based on the provided data, Macy's Inc interest coverage ratio has shown fluctuations over the years.
As of January 28, 2023, the interest coverage ratio was 9.67, indicating that Macy's earnings were able to cover its interest payments almost 10 times.
By January 31, 2023, the interest coverage ratio increased to 10.27, showing improved ability to cover interest expenses.
However, there was a significant decline in the interest coverage ratio by January 31, 2024, dropping to 1.92. This suggests that Macy's earnings were only able to cover its interest payments less than 2 times during that period.
The trend continued to February 3, 2024, with the interest coverage ratio falling further to 1.73, indicating a continued strain on Macy's ability to cover interest expenses.
By January 31, 2025, there was a notable improvement in the interest coverage ratio, reaching 8.28. This indicates that Macy's earnings were able to cover its interest payments approximately 8 times.
In conclusion, Macy's Inc saw fluctuations in its interest coverage ratio over the years, with some periods of stronger coverage and others of weaker coverage. It is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to meet its interest obligations.
Peer comparison
Jan 31, 2025