Nordstrom Inc (JWN)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 81.73 | 124.03 | 88.52 | 89.76 | 92.62 | 82.05 | 141.29 | 142.38 | 100.23 | 94.61 | 105.10 | 101.62 | 92.19 | 94.93 | 141.27 | 140.57 | 98.13 | 110.64 | 99.48 | 107.31 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 7.88 | — | — | 8.37 | — | 6.21 | — | 6.63 | — | 6.24 | — | 6.87 | — | 6.58 | — | — |
| Number of days of payables | days | — | — | — | — | 60.64 | — | — | 102.47 | — | 68.55 | — | 76.04 | — | 60.55 | — | 101.25 | — | 80.57 | — | — |
| Cash conversion cycle | days | 81.73 | 124.03 | 88.52 | 89.76 | 39.86 | 82.05 | 141.29 | 48.27 | 100.23 | 32.27 | 105.10 | 32.20 | 92.19 | 40.62 | 141.27 | 46.19 | 98.13 | 36.65 | 99.48 | 107.31 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 81.73 + — – —
= 81.73
The cash conversion cycle for Nordstrom Inc fluctuated over the period examined. It measures the time it takes for a company to convert its investments in inventory into cash flows from sales.
The company experienced a significant decrease in its cash conversion cycle from 107.31 days on January 31, 2022, to 36.65 days on July 30, 2022, indicating an improvement in managing its working capital efficiently. However, this trend was followed by an increase to 141.27 days on October 31, 2022, raising concerns about the company's liquidity and operational efficiency.
Subsequently, there were fluctuations in the cash conversion cycle, with periods of shorter cycles such as 32.20 days on April 29, 2023, and longer cycles like 141.29 days on October 31, 2023. These variations suggest fluctuations in the company's inventory management, accounts receivable collection, and accounts payable processes.
Analyzing further, the cash conversion cycle showed some stability within a range of 39.86 days on February 3, 2024, to 105.10 days on April 30, 2023. This stability could indicate that the company is maintaining a moderate level of efficiency in converting its resources into cash inflows.
Overall, Nordstrom Inc's cash conversion cycle exhibited fluctuations, indicating varying levels of efficiency in managing working capital and converting assets into cash flows during the period under consideration. Further analysis and comparison with industry benchmarks would provide more insights into the company's performance in this aspect.
Peer comparison
Jan 31, 2025