Nordstrom Inc (JWN)

Short-term

Turnover ratios

Inventory Turnover:
- Nordstrom's inventory turnover has been fluctuating over the years. It was 2.64 on January 28, 2023, increased to 5.16 on January 31, 2023, then decreased to 4.93 on January 31, 2024, rose to 2.83 on February 3, 2024, and finally reached 4.47 on January 31, 2025.
- The company seems to be effectively managing its inventory turnover, with a general increase from 2023 to 2025, indicating that inventory is moving at a faster rate in recent years.

Receivables Turnover:
- Nordstrom's receivables turnover data shows relatively high turnover rates, with figures of 58.60 on January 28, 2023, 43.99 on February 3, 2024, and no data available for the other years.
- The figures indicate that Nordstrom is efficient in converting its accounts receivable into cash, although a lack of data for certain years makes a comprehensive trend analysis challenging.

Payables Turnover:
- Nordstrom's payables turnover data is only available for January 28, 2023, and February 3, 2024, with figures of 4.14 and 4.32 respectively.
- This signifies that the company is able to manage its payables effectively and is paying its suppliers at a regular pace, albeit with limited data for a complete analysis.

Working Capital Turnover:
- Nordstrom's working capital turnover has shown variations over the years, with figures of 70.91 for January 28, 2023, remaining the same for January 31, 2023, increasing significantly to 229.58 for both January 31, 2024 and February 3, 2024, and then dropping to 24.99 on January 31, 2025.
- The significant increase in 2024 suggests that Nordstrom was able to generate more sales revenue relative to its working capital during that period, while the decrease in 2025 indicates a potential decline in efficiency. This ratio provides insights into how well the company is utilizing its working capital to generate sales.

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Average number of days

Nordstrom Inc's activity ratios provide insights into the efficiency of its operations.

1. Days of Inventory on Hand (DOH):
- In January 2023, Nordstrom held inventory for an average of 138.21 days, indicating a longer time needed to sell its inventory.
- By January 2024, the DOH decreased to 74.08 days, suggesting an improvement in inventory turnover efficiency.
- The DOH increased to 81.73 days by January 2025, indicating a slight increase in the time taken to sell inventory compared to the previous year.

2. Days of Sales Outstanding (DSO):
- In January 2023, Nordstrom had a DSO of 6.23 days, implying a rapid turnover of accounts receivable.
- DSO data is missing for subsequent years (2024 and 2025), making it challenging to assess the company's collections efficiency for those periods.

3. Number of Days of Payables:
- In January 2023, Nordstrom took approximately 88.15 days to pay its suppliers, indicating a relatively longer payment period.
- By February 2024, the number of days of payables decreased to 84.40 days, suggesting potential improvement in the company's payments to suppliers.
- No data is available for the number of days of payables for subsequent years, limiting the ability to assess changes in the company's payables management over those periods.

Overall, these activity ratios suggest that Nordstrom Inc has made some improvements in inventory turnover and payments to suppliers over the analyzed period, although more information on accounts receivable turnover is needed for a comprehensive assessment of the company's operational efficiency.

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Long-term

The fixed asset turnover ratio for Nordstrom Inc has shown some fluctuation over the years. In January 28, 2023, the fixed asset turnover ratio was 4.63, indicating that the company generated $4.63 in sales for every dollar invested in fixed assets. This ratio decreased to 3.22 by January 31, 2023, but improved to 4.62 by February 3, 2024. However, the data for January 31, 2024, and January 31, 2025 were not available.

On the other hand, the total asset turnover ratio for Nordstrom Inc has remained relatively stable over the years. It was 1.78 in both January 28, 2023, and January 31, 2023, showing that the company generated $1.78 in sales for every dollar of total assets. This ratio slightly decreased to 1.74 by January 31, 2024, and remained the same at 1.74 by February 3, 2024. By January 31, 2025, the total asset turnover ratio decreased to 1.67, indicating a slight decline in the efficiency of generating sales from total assets.

Overall, the fixed asset turnover ratio highlights the efficiency of Nordstrom Inc in utilizing its fixed assets to generate sales, while the total asset turnover ratio reflects the company's ability to generate sales from all its assets. Fluctuations in these ratios may indicate changes in the company's asset management efficiency and operational performance over time.