M Macy's, Inc.

Overview and Growth

In fiscal 2025, Macy's, Inc. recorded $22.62B of revenue, net income of $642.00M, and an operating cash inflow of $1.43B. The $22.62B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 1.7% below fiscal 2024 revenue of $23.01B, marking a top-line contraction. The company reported diluted EPS of $2.32, adding a shareholder-level measure to the absolute income figures considered below. Diluted EPS increased by 12.1% from $2.07 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 1.39x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $9.12B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 40.3% of revenue, showing how much of the top line remained after direct costs. Operations produced $1.03B of income after the reported operating expense base, before the remaining non-operating and tax effects. Relative to revenue, operating income represented 4.6%, showing how efficiently sales converted into operating profit. Net income came to $642.00M, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 2.8%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $849.00M of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 3.8%, relating income before taxes directly to revenue. The company recognized $207.00M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 24.4% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

At period end, the $16.24B asset base was financed through $11.38B of liabilities and $4.86B of equity. Current assets were $6.67B against $4.49B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 1.49x, leaving a positive buffer for near-term obligations. The company held $1.25B in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 27.7% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $0.00, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 0.0x, showing how much debt the company carried for each unit of book equity. Debt represented 0.0% of total assets, placing borrowing in the context of the company’s full resource base. Relative to total assets, liabilities measured 70.1%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 7.7%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 1.0% lower than fiscal 2024 assets of $16.40B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

Cash flow from operations was $1.43B, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 2.23x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $373.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 26.1%, connecting investment intensity with the company’s cash-generation base. Free cash flow came to $1.06B, leaving a positive amount after capital expenditures. Free cash flow represented 4.7% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 6.5%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Jan 31, 2026. Analysis generated Oct 21, 2026.