Macys Working Capital vs. Short Ratio Fundamental AnalysisMacys is rated below average in short ratio category among related companies. It is rated below average in working capital category among related companies reporting about 974,316,940 of Working Capital per Short Ratio. Short Ratio is typically used by traders and speculators to identify trends in current market sentiment for a particular equity instrument. In its simple terms this ratio shows how many days it will take all current short sellers to cover their positions if the price of a stock begins to rise.
The higher the Short Ratio, the longer it would take to buy back the borrowed shares. In theory, the more short positions are currently outstanding, the faster it will be to cover shorted positions.Working Capital is measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is important indicator of the firm ability to continue its normal operations without additional debt obligations. .
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.