Nordstrom Inc (JWN)

Days of inventory on hand (DOH)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Inventory turnover		2.83	2.64	2.20	2.35	5.38
DOH	days	128.93	138.21	165.74	155.00	67.88

February 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.83
= 128.93

The days of inventory on hand (DOH) ratio for Nordstrom Inc has exhibited variability over the past five years. In 2024, the DOH ratio stands at 128.93 days, showing an improvement compared to the previous year when it was 138.21 days. This indicates that Nordstrom has been managing its inventory more efficiently in the most recent year.

However, when compared to the DOH ratios of 2022 and 2021, which were 165.74 days and 155.00 days respectively, the current ratio in 2024 shows a significant decrease. This suggests that Nordstrom has made considerable progress in optimizing its inventory management practices over the past few years.

A notable observation is the sharp decline in the DOH ratio from 2020 to 2021, where it decreased from 67.88 days to 155.00 days. This decline may indicate a change in Nordstrom's inventory management strategy or improvements in inventory turnover efficiency during that period.

Overall, while Nordstrom has shown improvement in managing its inventory more effectively in 2024 compared to the previous year, further analysis and monitoring of inventory practices will be essential to sustain and potentially enhance this positive trend in the future.