Macys Current Valuation vs. Cash and Equivalents Fundamental AnalysisMacys is rated below average in cash and equivalents category among related companies. It is rated below average in current valuation category among related companies reporting about 10.23 of Current Valuation per Cash and Equivalents. Cash or Cash Equivalents are the most liquid of all assets found on company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually 3 months).Enterprise Value is a firm valuation proxy that approximates current market value of a company. It is typically used to determine takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that company has on its balance sheet. When takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.Macys is rated below average in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Diversified Wholesale And Retail industry is now estimated at about 223.61 Billion. Macys holds roughly 15.65 Billion in current valuation claiming about 7% of equities under Diversified Wholesale And Retail industry.