Macys Operating Margin vs. Current Ratio

M -- USA Stock  

USD 38.73  0.89  2.25%

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Macys Current Ratio vs. Operating Margin Fundamental Analysis

Macys is regarded fifth in operating margin category among related companies. It is rated below average in current ratio category among related companies fabricating about  0.15  of Current Ratio per Operating Margin. The ratio of Operating Margin to Current Ratio for Macys is roughly  6.85 
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Macys 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
=
10.41 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
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.
Macys 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
=
1.52 times
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).

Macys Current Ratio Comparison

  Current Ratio 
      Macys Comparables 
Macys is rated below average in current ratio category among related companies.
  Operating Margin 
      Macys Comparables 
Macys is regarded fourth in operating margin category among related companies.