Nordstrom Inc (JWN)

Days of sales outstanding (DSO)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Receivables turnover		43.99	58.60	58.00	43.73	86.73
DSO	days	8.30	6.23	6.29	8.35	4.21

February 3, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 43.99
= 8.30

Nordstrom Inc's days of sales outstanding (DSO) measures the average number of days it takes for the company to collect payment after making a sale. Over the past five years, Nordstrom's DSO has fluctuated. In the most recent period ending on Feb 3, 2024, the DSO was 8.30 days, which represents an increase from the prior year's DSO of 6.23 days. This indicates that Nordstrom took longer to collect payments in the latest period.

Comparing the DSO to previous years, Nordstrom's DSO was relatively consistent in 2022 and 2021, with DSO figures of 6.29 days and 8.35 days, respectively. The notable improvement was seen in 2020 when the DSO dropped significantly to 4.21 days, suggesting a more efficient collection of receivables that year.

Overall, Nordstrom's DSO trend reflects fluctuations in its efficiency in collecting payments from customers. A higher DSO may indicate potential liquidity concerns or inefficiencies in the company's accounts receivable management, while a lower DSO may point to improved collection practices. Further analysis of the underlying factors influencing these changes could provide insights into Nordstrom's overall financial performance and operational effectiveness.