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Macy's ROE %

: 33.16% (As of Apr. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Macy's's annualized net income attributable to common stockholders for the quarter that ended in Apr. 2022 was $1,144 Mil. Macy's's average Total Stockholders Equity over the quarter that ended in Apr. 2022 was $3,450 Mil. Therefore, Macy's's annualized ROE % for the quarter that ended in Apr. 2022 was 33.16%.

The historical rank and industry rank for Macy's's ROE % or its related term are showing as below:

M' s ROE % Range Over the Past 10 Years
Min: -88.33   Med: 22.28   Max: 46.32
Current: 51.28

During the past 13 years, Macy's's highest ROE % was 46.32%. The lowest was -88.33%. And the median was 22.28%.

M's ROE % is ranked better than
94.48% of 1069 companies
in the Retail - Cyclical industry
Industry Median: 7.08 vs M: 51.28

Macy's ROE % Historical Data

The historical data trend for Macy's's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Macy's Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.11 18.19 8.80 -88.33 46.32

Macy's Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.76 47.41 31.07 89.67 33.16

Competitive Comparison

For the Department Stores subindustry, Macy's's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Macy's ROE % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Macy's's ROE % distribution charts can be found below:

* The bar in red indicates where Macy's's ROE % falls into.



Macy's ROE % Calculation

Macy's's annualized ROE % for the fiscal year that ended in Jan. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Jan. 2022 )/( (Total Stockholders Equity (A: Jan. 2021 )+Total Stockholders Equity (A: Jan. 2022 ))/ count )
=1430/( (2553+3621)/ 2 )
=1430/3087
=46.32 %

Macy's's annualized ROE % for the quarter that ended in Apr. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Apr. 2022 )/( (Total Stockholders Equity (Q: Jan. 2022 )+Total Stockholders Equity (Q: Apr. 2022 ))/ count )
=1144/( (3621+3278)/ 2 )
=1144/3449.5
=33.16 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Apr. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Macy's  (NYSE:M) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Apr. 2022 )
=Net Income/Total Stockholders Equity
=1144/3449.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1144 / 22156)*(22156 / 17281)*(17281 / 3449.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.16 %*1.2821*5.0097
=ROA %*Equity Multiplier
=6.62 %*5.0097
=33.16 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Apr. 2022 )
=Net Income/Total Stockholders Equity
=1144/3449.5
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (1144 / 1568) * (1568 / 1716) * (1716 / 22156) * (22156 / 17281) * (17281 / 3449.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7296 * 0.9138 * 7.75 % * 1.2821 * 5.0097
=33.16 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Apr. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Apr. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Macy's ROE % Related Terms

Thank you for viewing the detailed overview of Macy's's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Macy's Business Description

Macy's logo
Address
151 West 34th Street, New York, NY, USA, 10001
Founded in 1858 and based in New York City, Macy's operates 570 stores under the Macy's nameplate, 58 stores under the Bloomingdale's nameplate, and 160 freestanding Bluemercury specialty beauty stores (as of the end of fiscal-year 2021). Macy's also operates e-commerce sites and licenses two Bloomingdale's stores in the United Arab Emirates and Kuwait. Women's apparel, accessories, shoes, cosmetics, and fragrances comprised 59% of Macy's 2021 sales.
Executives
Granoff Jill director LIZ CLAIBORNE, INC. 1441 BROADWAY NEW YORK NY 10018
Chandoha Marie A director C/O THE CHARLES SCHWAB CORPORATION 211 MAIN STREET SAN FRANCISCO CA 94105
Zhen Tracey director C/O MACY'S, INC. 145 PROGRESS PLACE SPRINGDALE OH 45246
Buchanan Ashley director C/O THE MICHAELS COMPANIES, INC. 8000 BENT BRANCH DRIVE IRVING TX 75063
Mitchell Adrian V officer: Chief Financial Officer C/O MACY'S, INC. 151 WEST 34TH STREET NEW YORK NY 10001
Griscom Paul officer: Interim Principal Acctg. Offr. C/O MACY'S, INC. 145 PROGRESS PLACE SPRINGDALE OH 45246
Harper John T. officer: Chief Operations Officer C/O MACY'S, INC. 151 WEST 34TH STREET NEW YORK NY 10001
Boone Torrence director 3308 N MITTHOEFFER INDIANAPOLIS IN 46235
Abney David P director 55 GLENLAKE PARWAY, NE ATLANTA GA 30328
Price Paula A officer: Chief Financial Officer ONE CVS DRIVE WOONSOCKET RI 02895
Kirgan Danielle L. officer: Chief Human Resources Officer C/O MACY'S, INC. 151 WEST 34TH STREET NEW YORK NY 10001
Lawton Iii Harry A officer: President C/O EBAY INC. 2065 SAN JOSE CA 95125
Spring Antony officer: Chairman & CEO, Bloomingdale's C/O MACY'S, INC. 7 WEST SEVENTH STREET CINCINNATI OH 45202
Lennox Richard A officer: Chief Marketing Officer C/O MACYS, INC. 7 WEST SEVENTH STREET CINCINNATI OH 45202
Garcia C Elisa D officer: Chief Legal Officer 151 WEST 34TH STREET NEW YORK NY 10001

Macy's Headlines

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