Macys Number of Shares Shorted vs. Current Ratio Fundamental AnalysisMacys is rated below average in current ratio category among related companies. It is rated below average in number of shares shorted category among related companies making about 32,506,579 of Number of Shares Shorted per Current Ratio. Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e. Current Ration of 2 to 1).Number of Shares Shorted is total amount of shares that are currently sold short by investors. When stock is sold short, the short seller assumes the responsibility of buying the stock back at a lower price. The speculator will make money if the stock goes down in price or will experience loss if the stock price goes up.
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect price of the stock.