GURUFOCUS.COM » STOCK LIST » USA » NYSE » Macy's Inc (NYSE:M) » Definitions » Interest Coverage
Switch to:

Macy's Interest Coverage

: 8.94 (As of Apr. 2022)
View and export this data going back to 1992. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Macy's's Operating Income for the three months ended in Apr. 2022 was $429 Mil. Macy's's Interest Expense for the three months ended in Apr. 2022 was $-48 Mil. Macy's's interest coverage for the quarter that ended in Apr. 2022 was 8.94. The higher the ratio, the stronger the company's financial strength is.

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

M' s Interest Coverage Range Over the Past 10 Years
Min: 4.22   Med: 5.54   Max: 10.92
Current: 10.92


M's Interest Coverage is ranked better than
50.13% of 798 companies
in the Retail - Cyclical industry
Industry Median: 10.79 vs M: 10.92

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Macy's Interest Coverage Historical Data

The historical data trend for Macy's's Interest Coverage 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
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.56 5.54 5.53 - 8.84

Macy's Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Interest Coverage 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 2.89 7.41 8.92 21.15 8.94

Competitive Comparison

For the Department Stores subindustry, Macy's's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Macy's's Interest Coverage falls into.



Macy's Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Macy's's Interest Coverage for the fiscal year that ended in Jan. 2022 is calculated as

Here, for the fiscal year that ended in Jan. 2022, Macy's's Interest Expense was $-259 Mil. Its Operating Income was $2,289 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,393 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2022 )/Interest Expense (A: Jan. 2022 )
=-1*2289/-259
=8.84

Macy's's Interest Coverage for the quarter that ended in Apr. 2022 is calculated as

Here, for the three months ended in Apr. 2022, Macy's's Interest Expense was $-48 Mil. Its Operating Income was $429 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,024 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*429/-48
=8.94

* 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 higher the ratio, the stronger the company's Financial Strength is.


Macy's  (NYSE:M) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Macy's Interest Coverage Related Terms

Thank you for viewing the detailed overview of Macy's's Interest Coverage 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

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)