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.