Liabilities Breakdown
Tax Liabilities
5.7 B
Current Liabilities
10.5 B
Long-Term Liabilities
| Total Liabilities | 16.18 Billion | |
| Current Liabilities | 5.7 Billion | |
| Long-Term Liabilities | 10.49 Billion | |
| Tax Liabilities | 1.57 Billion |
Will Macys (NYSE:M) debt increase in October
 | By Rifka Kats | Macroaxis Story |
Macys Inc is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 2nd of September 2020. The stock continues to experience above-average trading activities. As many passive investors are finally getting excited about consumer cyclical space, Macys Inc could be a good starting point. Let's summarize the possibilities of Macys maintaining its debt level in October.
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Reviewed by Michael Smolkin
The entity has accumulated 8.58 B in total debt with debt to equity ratio (D/E) of 3.18, indicating that Macys Inc relies heavily on borrowing. The firm has a current ratio of 1.22, implying that it may not be capable to disburse its interest payments when they become due. The company has Profit Margin of (13.83) %, which may imply that it does not effectively control operational costs or executes on its competitive strategy. This is way below average. Similarly, it shows Operating Margin of 4.7 %, which implies that for every $100 of sales, it generated an operating income of 0.05. Macys financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Macys, including all of Macys's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Macys assets, the company is considered highly leveraged. Understanding the composition and structure of overall Macys debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Macys Total Liabilities
Macys Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Macys Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Macys balance sheet include debt obligations and money owed to different Macys vendors, workers, and loan providers. Below is the chart of Macys short long-term liabilities accounts currently reported on its balance sheet. You can use Macys Inc financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Macys's Liquidity
Macys financial leverage refers to using borrowed capital as a funding source to finance Macys Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Macys financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Macys' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Macys' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Macys's total debt and its cash.
Breaking it down
The small pull down in market price for the last few months may encourage stakeholders to take a closer look at the firm as it closed today at a share price of 6.7 on very low momentum in trading volume. The company management teams did not add much value to Macys Inc investors in August. However, diversifying your holdings with Macys or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.9. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Macys Inc partners.
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