Macys Working Capital vs. Operating Margin

M -- USA Stock  

USD 39.32  1.89  5.05%

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Macys Operating Margin vs. Working Capital Fundamental Analysis

Macys is regarded third in working capital category among related companies. It is regarded fifth in operating margin category among related companies . The ratio of Working Capital to Operating Margin for Macys is about  342,555,235 
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. .
Macys 
Working Capital 
 = 
Current Assets 
Current Liabilities 
=
3.57 B
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.
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.

Macys Operating Margin Comparison

  Operating Margin 
      Macys Comparables 
Macys is regarded fourth in operating margin category among related companies.
  Working Capital 
      Macys Comparables 
Macys is regarded second in working capital category among related companies.