Macy’s Inc (M)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,011,000 | 302,000 | 226,000 | 92,000 | 31,000 | 108,000 | 308,000 | 455,000 | 617,000 | 1,291,000 | 1,845,000 | 1,788,000 | 1,708,000 | 1,436,000 | 1,165,000 | 1,419,000 | 2,241,000 | 2,859,000 | 2,942,000 | 2,853,000 |
| Interest expense (ttm) | US$ in thousands | 115,000 | 121,000 | 116,000 | 120,000 | 124,000 | 133,000 | 142,000 | 144,000 | 146,000 | 153,000 | 158,000 | 163,000 | 169,000 | 168,000 | 170,000 | 175,000 | 176,000 | 178,000 | 188,000 | 194,000 |
| Interest coverage | 8.79 | 2.50 | 1.95 | 0.77 | 0.25 | 0.81 | 2.17 | 3.16 | 4.23 | 8.44 | 11.68 | 10.97 | 10.11 | 8.55 | 6.85 | 8.11 | 12.73 | 16.06 | 15.65 | 14.71 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,011,000K ÷ $115,000K
= 8.79
The interest coverage ratio measures a company’s ability to pay its interest expenses on outstanding debt. For Macy's Inc, we observe fluctuations in the interest coverage ratio over the period from January 31, 2022, to January 31, 2025. In January 2022, the interest coverage was 14.71, indicating the company's ability to cover its interest payments comfortably. However, there was a gradual decline in the ratio reaching a low of 0.25 in February 2024, reflecting potential issues in meeting interest obligations.
Subsequently, there was a slight improvement in the ratio in April 2024 and July 2024 but still remaining relatively low. By October 2024, the interest coverage ratio increased to 2.50, showing signs of recovery. In January 2025, the ratio further improved to 8.79, which could suggest a positive trend in the company's ability to cover its interest expenses.
Overall, the fluctuation in Macy's interest coverage ratio indicates variability in the company's financial health and its capacity to meet interest payment obligations. It is essential for investors and stakeholders to monitor these ratios closely to assess the company's financial stability and risk levels.
Peer comparison
Jan 31, 2025