Nordstrom Inc (JWN)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,344,000 | 5,257,000 | 5,382,000 | 5,489,000 | 5,065,000 | 5,308,000 | 5,275,000 | 5,142,000 | 5,042,000 | 4,715,000 | 4,463,000 | 4,135,000 | 4,387,000 | 6,119,000 | 7,605,000 | 9,329,000 | 10,324,000 | 10,285,000 | 10,370,000 | 10,476,000 |
| Inventory | US$ in thousands | 1,888,000 | 2,626,000 | 1,979,000 | 2,237,000 | 1,941,000 | 2,878,000 | 2,399,000 | 2,426,000 | 2,289,000 | 2,863,000 | 2,182,000 | 1,961,000 | 1,863,000 | 1,860,000 | 1,466,000 | 1,489,000 | 1,920,000 | 2,542,000 | 1,932,000 | 2,006,000 |
| 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 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,344,000K ÷ $1,888,000K
= 2.83
Nordstrom Inc's inventory turnover has displayed fluctuations over the periods provided. The inventory turnover ratio indicates how efficiently the company is managing its inventory levels. A higher turnover ratio implies that Nordstrom is selling its inventory more quickly.
Looking at the data, we see that the inventory turnover ratio ranged from a low of 1.65 to a high of 6.27 during the periods listed. The highest turnover was noted in August 2020, where the ratio stood at 6.27, indicating that Nordstrom was selling its goods rapidly during that period.
On the other hand, the lowest turnover ratio was observed in October 2021, with a value of 1.65. This suggests that Nordstrom took a longer time to sell its inventory during that period, which could potentially indicate overstocking or slow sales.
Overall, it is essential for Nordstrom to strike a balance in inventory management to optimize sales and profitability. Analyzing and monitoring the inventory turnover ratio regularly can help Nordstrom make informed decisions regarding inventory levels and sales strategies.
Peer comparison
Feb 3, 2024
Feb 3, 2024