Macy’s Inc (M)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.13 | 0.15 | 0.15 | 0.15 | 0.13 | 0.15 | 0.16 | 0.18 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.40 | 0.36 | 0.37 | 0.37 | 0.38 | 0.41 | 0.42 | 0.45 | 0.47 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.65 | 0.56 | 0.59 | 0.59 | 0.63 | 0.68 | 0.71 | 0.82 | 0.90 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Macy's Inc has shown consistent and relatively low debt-to-assets ratios over the periods indicated. The ratios have ranged from 0.13 to 0.18, indicating that Macy's has maintained a conservative level of debt relative to its total assets.
The debt-to-capital ratios have also been relatively stable, ranging from 0.36 to 0.47. This indicates that Macy's relies on debt for a moderate portion of its capital structure, while still having a significant portion financed through equity.
The debt-to-equity ratios have shown some variability, ranging from 0.56 to 0.90. This indicates that Macy's has been utilizing debt to fund its operations to a varying extent while also leveraging equity.
The financial leverage ratios have shown more significant fluctuation, ranging from 3.28 to 8.57. This suggests that Macy's has been significantly leveraged at certain points in time, potentially indicating higher financial risk.
Overall, Macy's Inc has maintained relatively conservative solvency ratios, indicating a balanced approach to debt utilization in its capital structure. However, the fluctuation in financial leverage ratios should be closely monitored to ensure that Macy's maintains a healthy level of financial risk.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.87 | 7.62 | 7.76 | 9.15 | 9.72 | 11.53 | 11.87 | 10.46 | 8.29 | 5.03 | 3.12 | -0.57 | -15.86 | -18.00 | -19.45 | -17.05 | 4.57 | 6.79 | 6.81 | 6.75 |
Interest coverage ratio is a financial metric that indicates a company's ability to pay interest expenses on its outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio signifies that the company is better positioned to meet its interest obligations.
Analyzing Macy's Inc interest coverage over the provided period, we observe fluctuations in the ratio. The interest coverage ratio ranged from a low of -19.45 to a high of 11.87. A ratio below 1 indicates that the company is not generating enough earnings to cover its interest expenses, which was particularly evident in the negative ratios for Jan 30, 2021, and Oct 31, 2020.
The trend for Macy's interest coverage ratio shows improvement from early 2021 onwards, with the ratio consistently increasing until it reached a peak of 11.87 in Jul 30, 2022. This positive trend indicates that Macy's was generating more earnings relative to its interest expenses during this period.
However, it is worth noting the significant decrease in the interest coverage ratio in the later part of the period, particularly the negative ratios in Jan 30, 2021, and Oct 31, 2020. Negative ratios suggest that the company's earnings were not sufficient to cover its interest expenses and may raise concerns about the company's financial health.
Overall, while Macy's interest coverage ratio has shown variability over the period, the increasing trend from early 2021 followed by a decline in the latter part highlights the importance of closely monitoring a company's ability to cover its interest obligations. Investors and stakeholders should consider the company's overall financial performance and management of debt levels in interpreting the interest coverage ratio.