Nordstrom Inc (JWN)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,345,000 | 5,126,000 | 5,041,000 | 4,387,000 | 10,324,000 |
| Payables | US$ in thousands | 1,236,000 | 1,238,000 | 1,529,000 | 1,960,000 | 1,576,000 |
| Payables turnover | 4.32 | 4.14 | 3.30 | 2.24 | 6.55 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,345,000K ÷ $1,236,000K
= 4.32
Nordstrom Inc's payables turnover has been relatively stable over the past five years, indicating the company's efficiency in managing its accounts payable. The payables turnover ratio measures how quickly the company pays its suppliers. Nordstrom's payables turnover ratio has ranged from 2.24 to 6.55 over the period, with an average of 4.31.
The increasing trend in the payables turnover ratio from 2020 to 2024 suggests that Nordstrom has been able to manage its accounts payable more efficiently, potentially negotiating better payment terms with suppliers or streamlining its payment processes. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently or quickly, which could imply strong cash management practices or good relationships with vendors.
Overall, Nordstrom's consistent and improving payables turnover ratio reflects a healthy balance between managing its accounts payable and maintaining positive relationships with its suppliers. This ratio provides insights into the company's liquidity and operational efficiency in managing its working capital.
Peer comparison
Feb 3, 2024