Nordstrom Inc (JWN)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	9,396,000	8,181,000	8,840,000	8,519,000	7,440,000	8,399,000	6,784,000	6,732,000	7,207,000	7,635,000	7,769,000	8,035,000	7,685,000	7,463,000	7,436,000	7,473,000	8,923,000	7,914,000	8,901,000	7,786,000
Inventory	US$ in thousands	2,104,000	2,780,000	2,144,000	2,095,000	1,888,000	1,888,000	2,626,000	2,626,000	1,979,000	1,979,000	2,237,000	2,237,000	1,941,000	1,941,000	2,878,000	2,878,000	2,399,000	2,399,000	2,426,000	2,289,000
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

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,396,000K ÷ $2,104,000K
= 4.47

The inventory turnover ratio is a key indicator of a company's efficiency in managing its inventory. It measures how many times a company sells and replaces its inventory during a specific period. Nordstrom Inc's inventory turnover has varied over the given time periods as follows:

- As of January 31, 2022, the inventory turnover was 3.40.
- The ratio improved to 3.67 by April 30, 2022.
- It decreased slightly to 3.30 by July 30, 2022, but then increased to 3.72 by July 31, 2022.
- A significant decline was observed by October 29, 2022, with a turnover of 2.60, maintaining a similar level by October 31, 2022, at 2.58.
- From January 28, 2023, to July 31, 2024, the inventory turnover showed a generally increasing trend, fluctuating between 3.47 and 4.47.
- The highest turnover was noted on January 31, 2024, at 4.45, followed by 4.12 on July 31, 2024.
- A decrease was then seen on October 31, 2024, at 2.94, before climbing back up to 4.47 by January 31, 2025.

Overall, the inventory turnover ratio for Nordstrom Inc has shown fluctuations but generally trended upwards, indicating an improvement in inventory management efficiency over the given periods. It is vital for investors and stakeholders to monitor this ratio to assess the company's ability to efficiently manage its inventory levels and generate sales.