Nordstrom Inc (JWN)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Inventory turnover		4.47	2.94	4.12	4.07	3.94	4.45	2.58	2.56	3.64	3.86	3.47	3.59	3.96	3.84	2.58	2.60	3.72	3.30	3.67	3.40
DOH	days	81.73	124.03	88.52	89.76	92.62	82.05	141.29	142.38	100.23	94.61	105.10	101.62	92.19	94.93	141.27	140.57	98.13	110.64	99.48	107.31

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.47
= 81.73

The Days of Inventory on Hand (DOH) ratio for Nordstrom Inc shows the number of days it takes for the company to sell its current inventory. Tracking this ratio provides insights into how efficiently Nordstrom manages its inventory levels.

Analyzing the historical DOH data provided, we observe fluctuations in the ratio over time. Nordstrom's DOH ranged from a low of 81.73 days on January 31, 2025, to a high of 142.38 days on October 28, 2023. A lower DOH indicates faster inventory turnover, which is generally viewed positively as it implies efficient sales and minimal excess stock.

During the period covered by the data, Nordstrom experienced variations in its DOH, suggesting changes in inventory management practices or sales performance. For instance, the decrease in DOH from 141.27 days on October 31, 2022, to 94.93 days on January 28, 2023, indicates a significant improvement in inventory turnover efficiency.

It is essential for Nordstrom to strike a balance when managing inventory levels. A consistently high DOH may suggest overstocking, leading to higher holding costs and potential obsolescence risks. On the other hand, a consistently low DOH could indicate stockouts or missed sales opportunities.

Overall, monitoring Nordstrom's DOH over time and comparing it to industry benchmarks can provide valuable insights into the company's inventory management effectiveness and operational efficiency.