Nordstrom Inc (JWN)
Cash ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,035,000 | 628,000 | 628,000 | 687,000 | 687,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,088,000 | 3,072,000 | 3,072,000 | 2,990,000 | 2,990,000 |
| Cash ratio | 0.34 | 0.20 | 0.20 | 0.23 | 0.23 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,035,000K
+ $—K)
÷ $3,088,000K
= 0.34
The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Nordstrom Inc's cash ratio has been relatively consistent over the years according to the data provided. In January 2023 and February 2024, the cash ratio stood at 0.23, indicating that Nordstrom had $0.23 of cash and cash equivalents for every $1 of current liabilities.
However, in January 2024, there was a slight decrease in the cash ratio to 0.20, suggesting a decrease in Nordstrom's ability to cover its short-term liabilities with available cash. Subsequently, in January 2025, the cash ratio improved significantly to 0.34, indicating an increase in liquidity, with Nordstrom having $0.34 in cash and cash equivalents for every $1 of current liabilities.
Overall, Nordstrom Inc's cash ratio reflects fluctuations in its liquidity position over the years, with the company showing varying levels of ability to meet its short-term obligations with its available cash resources.
Peer comparison
Jan 31, 2025