What Is Macys Debt?
Macy's had $bar q$ debt up from $4.16b
Macy's had US$4.86b of debt at the end of January, up from US$4.16b a year ago. Click the image to see more. It has US$ 1.68b in cash that is offset by net debt of about US$3.18b.
Total Assets
The percentage of assets that are financed with loans and financial obligations is called the total assets. The ratio is a general measure of a company's financial position and can be used to determine the ability to meet financial requirements for outstanding loans. It is calculated by dividing the company's total assets by its long-term debt. The debt total assests ratio for the quarter that ended in July of 2016 was 0.35.
Macy's Undergoing $Delta$-Rise
Macy's had US$4.69b of debt in August, down from US$5.54b a year prior. It has US$674.0m in cash and a net debt of 888-492-0.
Macy's Debt-to Equity Ratio
The cost of raising debt is cheaper than the cost of raising equity. Raising debt against equity has consequences. The equity that shareholders value doesn't getDiluted and that results in a higher interest expense.
A higher interest rate can result in higher profits because of a tax shield. Higher profits and a lower share count translate into higher earnings per share. When taking on debt, a company should look at the returns from investing the money to see if they are better than the cost.
The company is in serious trouble if not. It's important for investors to know if a company is well-equipped to handle its debt and make its payments. Three simple metrics can help us understand debt positions.
Macy's debt-to-equity ratio is 130.8%, which is higher than its peers. The company's debt has gone up in the past year to $ 7.7 billion but is still lower than it has been in the past. It has an interest coverage ratio of over five times.
Macy's is able to cover its interest requirements with enough revenue. There is not much to worry about. J.C. Penney has a less robust interest coverage ratio than Saks.
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