Macy's (Macy's) Interest Coverage

: 32.93 (As of Jan. 2024)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Macy's's Operating Income for the three months ended in Jan. 2024 was $889 Mil. Macy's's Interest Expense for the three months ended in Jan. 2024 was $-27 Mil. Macy's's interest coverage for the quarter that ended in Jan. 2024 was 32.93. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Macy's's Interest Coverage or its related term are showing as below:

M' s Interest Coverage Range Over the Past 10 Years
Min: 3.97 Med: 5.51 Max: 10.14
Current: 9

M's Interest Coverage is ranked better than
52.72% of 753 companies
in the Retail - Cyclical industry
Industry Median: 7.85 vs M: 9.00

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Macy's Interest Coverage Historical Data

The historical data trend for Macy's's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Macy's Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

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5.26

8.47

10.14

8.99

Macy's Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage	Get a 7-Day Free Trial															21.61	6.35	0.06	2.54	32.93

Competitive Comparison

For the Department Stores subindustry, Macy's's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Macy's Interest Coverage Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Macy's's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Macy's's Interest Coverage falls into.

Macy's Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Macy's's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Macy's's Interest Expense was $-135 Mil. Its Operating Income was $1,214 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,984 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	1214	/	-135
	=	8.99

Macy's's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Macy's's Interest Expense was $-27 Mil. Its Operating Income was $889 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,984 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	889	/	-27
	=	32.93

The higher the ratio, the stronger the company's Financial Strength is.

Macy's (NYSE:M) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Macy's Interest Coverage Related Terms

Thank you for viewing the detailed overview of Macy's's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Macy's (Macy's) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Macy's Inc (NYSE:M) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

M:Mexico FDO:Germany FDO:Germany MACY34:Brazil MACY:Austria

Address

151 West 34th Street, New York, NY, USA, 10001

Website

https://www.macysinc.com

Founded in 1858 and based in New York City, Macy's operates about 550 stores under the Macy's nameplate, nearly 60 stores under the Bloomingdale's (full-price and outlet) and Bloomie's nameplates, and 158 freestanding Bluemercury specialty beauty stores. Macy's also operates e-commerce sites and licenses two Bloomingdale's stores in the United Arab Emirates and Kuwait. Women's apparel, accessories, shoes, cosmetics, and fragrances composed 61% of Macy's 2022 sales.

Executives

Adrian V Mitchell	officer: Chief Financial Officer	C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Paul Griscom	officer: Interim Principal Acctg. Offr.	C/O MACY'S, INC., 145 PROGRESS PLACE, SPRINGDALE OH 45246
Danielle L. Kirgan	officer: Chief Human Resources Officer	C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Garcia C Elisa D	officer: Chief Legal Officer	151 WEST 34TH STREET, NEW YORK NY 10001
Jeffrey Gennette	officer: Chief Merchandising Officer	C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Antony Spring	officer: Chairman & CEO, Bloomingdale's	C/O MACY'S, INC., 7 WEST SEVENTH STREET, CINCINNATI OH 45202
Naveen K. Chopra	director	C/O 2160 GOLD STREET, SAN JOSE CA 95002
Emilie Arel	director	C/O CASPER SLEEP INC., 175 GREENWICH ST., THREE WORLD TRADE CENTER, FLOOR 39, NEW YORK NY 10007
Jill Granoff	director	LIZ CLAIBORNE, INC., 1441 BROADWAY, NEW YORK NY 10018
Marie A Chandoha	director	C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105
Ashley Buchanan	director	C/O THE MICHAELS COMPANIES, INC., 8000 BENT BRANCH DRIVE, IRVING TX 75063
Tracey Zhen	director	C/O MACY'S, INC., 145 PROGRESS PLACE, SPRINGDALE OH 45246
John T. Harper	officer: Chief Operations Officer	C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Paul C Varga	director	850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Felicia Williams	officer: EVP,Controller/Enterprise Risk	C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001