Nordstrom Inc (JWN)
Working capital turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,016,000 | 15,113,000 | 16,069,000 | 15,495,000 | 15,480,000 | 14,832,000 | 14,184,000 | 14,045,000 | 13,906,000 | 14,453,000 | 15,000,000 | 15,365,000 | 15,730,000 | 15,506,000 | 15,282,000 | 15,305,000 | 16,245,000 | 16,636,000 | 16,178,000 | 16,246,000 |
| Total current assets | US$ in thousands | 3,689,000 | 4,032,000 | 3,448,000 | 3,218,000 | 3,136,000 | 3,136,000 | 3,715,000 | 3,715,000 | 3,510,000 | 3,510,000 | 3,511,000 | 3,511,000 | 3,209,000 | 3,209,000 | 3,807,000 | 3,807,000 | 3,601,000 | 3,601,000 | 3,539,000 | 3,172,000 |
| Total current liabilities | US$ in thousands | 3,088,000 | 3,532,000 | 3,218,000 | 3,135,000 | 3,072,000 | 3,072,000 | 3,709,000 | 3,709,000 | 3,546,000 | 3,546,000 | 3,654,000 | 3,654,000 | 2,990,000 | 2,990,000 | 3,839,000 | 3,839,000 | 3,556,000 | 3,556,000 | 3,587,000 | 3,314,000 |
| Working capital turnover | 24.99 | 30.23 | 69.87 | 186.69 | 241.88 | 231.75 | 2,364.00 | 2,340.83 | — | — | — | — | 71.83 | 70.80 | — | — | 361.00 | 369.69 | — | — |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,016,000K ÷ ($3,689,000K – $3,088,000K)
= 24.99
Based on the data provided for Nordstrom Inc's working capital turnover, it is evident that the company's efficiency in utilizing its working capital to generate sales has fluctuated over the specified time period.
The working capital turnover ratio is a measure of how effectively a company utilizes its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to generate sales.
In this case, the working capital turnover ratio for Nordstrom Inc shows a significant increase from July 30, 2022, to October 31, 2023, reaching a peak of 2,364.00. This suggests that the company was able to generate a higher level of sales relative to its working capital during this period, indicating improved efficiency.
Subsequently, there is a noticeable decline in the working capital turnover ratio from January 31, 2024, to October 31, 2024, dropping to 30.23. This decrease signifies a reduction in the company's ability to generate sales relative to its working capital, indicating a potential inefficiency in working capital management during this period.
Overall, Nordstrom Inc's working capital turnover ratio has exhibited variability, showcasing periods of both efficiency and inefficiency in utilizing its working capital to drive sales. Further analysis and examination of the underlying factors driving these fluctuations would be necessary to evaluate the company's working capital management more comprehensively.
Peer comparison
Jan 31, 2025