Nordstrom Inc (JWN)

Days of sales outstanding (DSO)

		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
Receivables turnover		43.99	45.32	60.24	54.27	58.60	54.50	52.62	51.68	58.00	51.09	42.27	48.76	43.73	45.34	83.49	92.21	86.73	66.11	73.68	67.56
DSO	days	8.30	8.05	6.06	6.73	6.23	6.70	6.94	7.06	6.29	7.14	8.63	7.49	8.35	8.05	4.37	3.96	4.21	5.52	4.95	5.40

February 3, 2024 calculation

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

The Days Sales Outstanding (DSO) ratio for Nordstrom Inc has shown various fluctuations over the past few quarters. DSO represents the average number of days it takes for a company to collect revenue after a sale has been made.

From Feb 3, 2024, to Oct 28, 2023, the DSO increased slightly from 8.05 days to 8.30 days, indicating a potential delay in collecting receivables. However, it decreased significantly from Jul 29, 2023, to Apr 29, 2023, from 6.06 days to 6.73 days. This lower DSO suggests improved efficiency in collecting payments from customers.

The DSO remained relatively stable around the 6 to 7-day range in the previous quarters, apart from a slight increase seen from Oct 30, 2021, to Jul 31, 2021. The sharp decrease in DSO from Aug 1, 2020, to May 2, 2020, from 8.05 days to 4.37 days indicates a significant improvement in the company's receivables management during that period.

Overall, the trend in DSO for Nordstrom Inc reflects varying efficiency levels in collecting payments from customers. Monitoring DSO can provide insights into the company's cash flow and liquidity management.