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 Price to Sales vs. Operating Margin Fundamental Analysis
Macys is rated below average in operating margin category among related companies. It is rated below average in price to sales category among related companies fabricating about 0.04 of Price to Sales per Operating Margin. The ratio of Operating Margin to Price to Sales for Macys is roughly 27.61 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.
|Operating Margin ( % )|
|Price to Sales ( times )|
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.Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
The most important factor to remember is that the price of equity takes a firm's debt into account, whereas the sales does not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Macys Price to Sales Comparison
Macys is rated below average in price to sales category among related companies.