Nordstrom Inc (JWN)

Days of inventory on hand (DOH)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Inventory turnover		2.83	2.00	2.72	2.45	2.61	1.84	2.20	2.12	2.20	1.65	2.05	2.11	2.35	3.29	5.19	6.27	5.38	4.05	5.37	5.22
DOH	days	128.95	182.33	134.21	148.75	139.87	197.90	166.00	172.21	165.71	221.63	178.45	173.10	155.00	110.95	70.36	58.26	67.88	90.21	68.00	69.89

February 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.83
= 128.95

The Days of Inventory on Hand (DOH) for Nordstrom Inc has fluctuated over the periods provided, indicating varying efficiency in managing its inventory levels. The range of DOH spans from a low of 58.26 days to a high of 221.63 days, suggesting significant changes in inventory turnover efficiency.

A higher DOH, such as the peak of 221.63 days in October 2021, indicates that Nordstrom held inventory for a longer period before selling it, potentially tying up working capital and leading to higher carrying costs. On the other hand, lower DOH values, like the lowest of 58.26 days in May 2020, reflect faster inventory turnover, which may signify effective inventory management and alignment with customer demand.

Overall, monitoring and managing the DOH metric is crucial for Nordstrom to strike a balance between stocking enough inventory to meet customer demand while avoiding excess inventory that can impact profitability. The trend in DOH can provide insights into Nordstrom's operational efficiency and inventory management strategies over time. Further analysis and comparison with industry benchmarks can help assess Nordstrom's performance in this aspect.