Nordstrom Inc (JWN)
Cash ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 628,000 | 687,000 | 322,000 | 681,000 | 853,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,072,000 | 2,990,000 | 3,314,000 | 4,120,000 | 3,520,000 |
| Cash ratio | 0.20 | 0.23 | 0.10 | 0.17 | 0.24 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($628,000K
+ $—K)
÷ $3,072,000K
= 0.20
The cash ratio of Nordstrom Inc has fluctuated over the past five fiscal years, with values of 0.20, 0.23, 0.10, 0.17, and 0.24 for the years ended February 3, 2024, January 28, 2023, January 29, 2022, January 30, 2021, and February 1, 2020, respectively. The cash ratio represents the company's ability to cover its current liabilities with its available cash and cash equivalents.
A higher cash ratio indicates a stronger ability to meet short-term obligations using cash on hand. The decreasing trend in Nordstrom's cash ratio from 2020 to 2022 may raise concerns about the company's liquidity position and its ability to cover immediate liabilities. However, the slight increase in the cash ratio in 2023 provides a positive signal that Nordstrom improved its liquidity position in that fiscal year.
It is essential for investors and stakeholders to monitor Nordstrom's cash ratio over time to assess the company's liquidity risk and ability to meet its short-term financial obligations. Additionally, comparing Nordstrom's cash ratio to industry benchmarks and peers can provide further insights into the company's liquidity management and financial health.
Peer comparison
Feb 3, 2024