Nordstrom Inc (JWN)
Working capital turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,693,000 | 15,530,000 | 14,789,000 | 10,715,000 | 15,524,000 |
| Total current assets | US$ in thousands | 3,136,000 | 3,209,000 | 3,172,000 | 3,642,000 | 3,230,000 |
| Total current liabilities | US$ in thousands | 3,072,000 | 2,990,000 | 3,314,000 | 4,120,000 | 3,520,000 |
| Working capital turnover | 229.58 | 70.91 | — | — | — |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,693,000K ÷ ($3,136,000K – $3,072,000K)
= 229.58
The working capital turnover ratio for Nordstrom Inc has shown a significant improvement over the years, with the ratio increasing from 70.91 in January 28, 2023, to 229.58 in February 3, 2024. This indicates that Nordstrom Inc has been able to efficiently utilize its working capital to generate sales revenue.
A high working capital turnover ratio suggests that the company is managing its working capital effectively by quickly converting it into sales. This can be attributed to effective inventory management, accounts receivable management, and accounts payable management.
The significant increase in the working capital turnover ratio from 2023 to 2024 indicates that Nordstrom Inc has been able to streamline its working capital management processes, leading to increased efficiency and productivity.
It is worth noting that there is missing data for the years 2021 and 2022, which prevents a comprehensive analysis of the trend in working capital turnover over those years. However, the data available suggests a positive trajectory in the company's working capital management efficiency.
Peer comparison
Feb 3, 2024