The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin declined from 2.30% in 2018 to 0.44% in 2022.
The average EBIT Margin for the period under analysis was –1.22%, with 2020 and 2021 performing the worst and best, respectively.
In the current year, Macys was able to cover its interest liabilities 1.92 times in the current year- compared to 2018 when it was 4.55 times.
The Capital turnover stood at 2.01 times in 2021 from 1.73 in 2018, implying a high performance on Capital of the business in relation to revenue.
Profitability
The revenue of Macys has fluctuated year on year. The revenue decreased by a negative 29.37% between 2019 and 2020 and a further 46.43% increase was recorded between 2020 and 2021. There also occurred a decrease of a negative 6.22% between 2021 and 2022 (the current period).
Macys’s performance in profitability looks good as the cash flow return on investment also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks strong, as current ratio increased from 1.20:1 to 1.37:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Macys is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be high as it stood at 1.45% in the current year.