Macys Profit Margin vs. Operating Margin

Macys -- USA Stock  

USD 29.96  0.50  1.64%

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Macys Operating Margin vs. Profit Margin Fundamental Analysis

Macys is rated below average in profit margin category among related companies. It is rated below average in operating margin category among related companies reporting about  1.64  of Operating Margin per Profit Margin.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Macys 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
=
6.23 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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 
=
10.19 %
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.

Macys Operating Margin Comparison

  Operating Margin 
      Macys Comparables 
Macys is regarded fifth in operating margin category among related companies.
  Profit Margin 
      Macys Comparables 
Macys is regarded fifth in profit margin category among related companies.