Macys Debt to Equity vs. Return On Equity

M -- USA Stock  

USD 35.53  0.04  0.11%

The Drivers Module shows relationships between Macys's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Macys over time as well as its relative position and ranking within its peers. Please see also Stocks Correlation

Macys Return On Equity vs. Debt to Equity Fundamental Analysis

Macys is rated below average in debt to equity category among related companies. It is rated below average in return on equity category among related companies reporting about  0.34  of Return On Equity per Debt to Equity. The ratio of Debt to Equity to Return On Equity for Macys is roughly  2.93 
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Macys 
D/E 
 = 
Total Debt 
Total Equity 
=
93.90 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging barrowing against the capital invested by the owners.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Macys 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
=
32.05 %
For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Macys Return On Equity Comparison

Macys is rated below average in return on equity category among related companies.
  Debt to Equity 
      Macys Comparables 
Macys is rated below average in debt to equity category among related companies.
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