Nordstrom Inc (JWN)

Short-term

Turnover ratios

Nordstrom Inc's Inventory turnover ratio fluctuated over the periods, ranging from a low of 2.56 to a high of 4.47. This ratio indicates the number of times inventory was sold and replaced during the year. The increasing trend in the later periods suggests improved efficiency in managing inventory.

The Receivables turnover ratio ranged from 43.62 to 58.75, showing how many times the company collected its accounts receivable during the year. The lack of data for some periods makes it challenging to analyze the trend, but the values indicate effective management of receivables.

The Payables turnover ratio varied from 3.56 to 6.03, reflecting how quickly the company pays its suppliers. A higher ratio indicates a shorter time taken to pay suppliers, which can be beneficial for cash flow management.

The Working capital turnover ratio also showed fluctuations, with values ranging from 24.99 to 2,364.00. This ratio demonstrates how efficiently the company utilizes its working capital to generate sales. The significant variance in values indicates varying levels of operating efficiency over the periods.

Overall, analyzing Nordstrom Inc's activity ratios provides insights into its inventory management, customer credit policies, supplier payment practices, and utilization of working capital to drive sales.

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Average number of days

Based on the provided data for Nordstrom Inc, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- Nordstrom's inventory turnover has been fluctuating over the periods. A higher number of days of inventory on hand indicates that the company is holding onto inventory for a longer period before selling, which can tie up capital and lead to potentially higher carrying costs. Nordstrom's DOH ranged from 82.05 days to 141.27 days, showing some variability in managing its inventory levels.

2. Days of Sales Outstanding (DSO):
- The DSO metric helps measure how quickly Nordstrom is collecting payments from its customers. In this case, there are missing data points, but the available figures show that DSO ranged from 6.21 days to 8.37 days over the periods analyzed. Lower DSO figures generally indicate that the company is efficient in collecting payments from customers in a timely manner.

3. Number of Days of Payables:
- Nordstrom's payables turnover can be assessed through the number of days of payables. The company's payables period ranged from 60.55 days to 102.47 days during the periods analyzed. A longer payables period could suggest that Nordstrom is taking its time to pay its suppliers, potentially improving its cash flow position.

Overall, analyzing these activity ratios provides insight into Nordstrom's inventory management, sales collection efficiency, and vendor payment practices. It is important for Nordstrom to strike a balance between these ratios to optimize its working capital management and operational efficiency.

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Long-term

Nordstrom Inc's long-term activity ratios show a varying trend over the provided time period.

1. Fixed Asset Turnover: The company's fixed asset turnover ratio has fluctuated significantly, ranging from 3.05 to 4.87. This ratio measures how efficiently Nordstrom generates sales from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate revenue. Despite some fluctuations, the trend seems to be generally increasing and reaching higher levels, especially in recent periods.

2. Total Asset Turnover: The total asset turnover ratio has also shown some fluctuations, with values ranging from 1.56 to 1.86. This ratio indicates how effectively Nordstrom utilizes its total assets to generate sales. A higher ratio suggests better efficiency in generating sales with the given level of assets. The trend in total asset turnover seems to be relatively stable with some minor fluctuations over the periods analyzed.

Overall, Nordstrom Inc's long-term activity ratios suggest that the company has been making improvements in utilizing its assets efficiently to generate sales. The increasing trend in fixed asset turnover and relatively stable total asset turnover ratios indicate positive operational performance and management of assets. However, further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of Nordstrom's asset utilization efficiency.