Macy’s Inc (M)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.17 | 0.00 | 0.00 | 0.13 | 0.00 | 0.15 | 0.00 | 0.15 | 0.00 | 0.15 | 0.00 | 0.13 | 0.00 | 0.15 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.40 | 0.00 | 0.00 | 0.36 | 0.00 | 0.37 | 0.00 | 0.37 | 0.00 | 0.38 | 0.00 | 0.41 | 0.00 | 0.42 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.65 | 0.00 | 0.00 | 0.56 | 0.00 | 0.59 | 0.00 | 0.59 | 0.00 | 0.63 | 0.00 | 0.68 | 0.00 | 0.71 | 0.00 | 0.00 |
| Financial leverage ratio | 3.60 | 1.00 | 3.68 | 3.93 | 3.93 | 4.21 | 4.37 | 4.37 | 3.87 | 3.87 | 4.05 | 4.05 | 4.13 | 4.13 | 5.25 | 5.25 | 4.63 | 4.63 | 5.18 | 4.86 |
Based on the provided data, Macy’s Inc has shown consistency in maintaining a low debt-to-assets ratio, with values mostly at 0.00 across the reporting periods. This indicates that Macy’s has very little debt relative to its total assets, which is a positive sign of financial health.
The debt-to-capital ratio for Macy’s shows a slight increase from 0.00 in earlier periods to around 0.40 in some later periods. This suggests that a small portion of Macy’s capital structure is funded by debt, but the majority is still financed by equity.
Furthermore, the debt-to-equity ratio has also increased over time, indicating that the amount of debt relative to equity has been on the rise. However, the ratios are still relatively low, suggesting Macy’s is not heavily reliant on debt to finance its operations.
The financial leverage ratio for Macy’s fluctuates over the periods but generally decreases from around 5.00 to 3.60. This demonstrates that Macy’s is effectively managing its financial leverage by reducing debt and increasing equity, which is a positive indicator of solvency.
In conclusion, Macy’s Inc appears to have a healthy balance sheet with low debt levels relative to its assets and capital structure. The company has been successful in optimizing its financial leverage over time, which bodes well for its long-term solvency.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing Macy's Inc interest coverage over the provided time period shows fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio ranged from highs of around 16 at times, indicating a strong ability to cover interest payments, to lows of around 2 or even less, suggesting a potential strain on meeting interest obligations.
Specifically, we observe that Macy's interest coverage fluctuated significantly between the periods, with a general declining trend from 2022 to 2024. The ratio decreased from above 15 in 2022 to around 1.95 in July 2024, indicating a potential increase in financial risk as the company may be less able to cover its interest payments.
The declining trend in Macy's interest coverage raises concerns about the company's ability to manage its debt levels effectively and warrants further investigation into the factors contributing to this trend. Investors and creditors closely monitor the interest coverage ratio as a key indicator of a company's financial health and its ability to meet its debt obligations in the long term.