Macys Current Ratio vs. Total Debt Fundamental Analysis
Macys is rated below average in total debt category among related companies. It is rated below average in current ratio category among related companies . The ratio of Total Debt to Current Ratio for Macys is about 4,096,296,296
|Current Ratio ( times )|
Macys is rated below average in total debt category among related companies. Total debt of Department Stores industry is now estimated at about 333.2 Billion. Macys claims roughly 5.53 Billion in total debt contributing just under 2% to equities under Department Stores industry.Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principle payments will eventually prevent the firm from borrow excessively.
In most industries, total debt may also include current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meaningful to compare total debt amounts between companies that operate within the same sector.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.
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