Nordstrom Inc (JWN)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 628,000 | 687,000 | 322,000 | 681,000 | 853,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 334,000 | 265,000 | 255,000 | 245,000 | 179,000 |
| Total current liabilities | US$ in thousands | 3,072,000 | 2,990,000 | 3,314,000 | 4,120,000 | 3,520,000 |
| Quick ratio | 0.31 | 0.32 | 0.17 | 0.22 | 0.29 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($628,000K
+ $—K
+ $334,000K)
÷ $3,072,000K
= 0.31
The quick ratio of Nordstrom Inc has been fluctuating over the past five years. The quick ratio indicates the company's ability to meet its short-term obligations using liquid assets. From 2020 to 2022, the quick ratio initially decreased from 0.29 to 0.17, suggesting a potential liquidity strain. However, there was a notable improvement in 2023 with the ratio increasing to 0.32. This improvement indicates better short-term liquidity management. In 2024, the quick ratio slightly decreased to 0.31, still indicating that the company may have difficulty meeting its short-term obligations with its current liquid assets. It is essential for Nordstrom Inc to monitor its liquidity position closely and consider strategies to improve its quick ratio to ensure financial stability in the short term.
Peer comparison
Feb 3, 2024