Nordstrom Inc (JWN)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.43% | 63.62% | 36.68% | 35.49% | 66.99% |
| Operating profit margin | 3.30% | 27.24% | 3.64% | 2.99% | 33.99% |
| Pretax margin | 2.62% | 1.00% | 1.00% | 2.17% | 2.17% |
| Net profit margin | 1.96% | 0.91% | 0.91% | 1.58% | 1.58% |
Nordstrom Inc's profitability ratios show fluctuations over the years. The gross profit margin, which indicates how efficiently the company generates profit from its revenue after accounting for the cost of goods sold, ranged from a high of 66.99% on January 28, 2023, to a low of 35.49% on January 31, 2023. It improved to 37.43% on January 31, 2025.
Similarly, the operating profit margin, reflecting the company's ability to generate profit from its core operations, varied from 33.99% on January 28, 2023, to 2.99% on the same date in 2023. It increased to 3.30% on January 31, 2025.
The pretax margin, which shows the company's profit before tax relative to its revenue, remained relatively stable around 1-2% from January 28, 2023, to February 3, 2024, but improved to 2.62% on January 31, 2025.
The net profit margin, representing the company's bottom line profit after all expenses are deducted from revenue, showed a similar trend as the pretax margin, hovering between 0.91% and 1.58% until increasing to 1.96% on January 31, 2025. Overall, Nordstrom Inc's profitability margins reflect varying levels of efficiency and performance in generating profits over the years.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.52% | 47.41% | 6.34% | 5.32% | 60.35% |
| Return on assets (ROA) | 3.28% | 1.59% | 1.59% | 2.80% | 2.80% |
| Return on total capital | 43.42% | 7.25% | 33.49% | 64.28% | 12.93% |
| Return on equity (ROE) | 25.79% | 15.80% | 15.80% | 33.15% | 33.15% |
Based on the profitability ratios of Nordstrom Inc, we can observe the following trends:
1. Operating return on assets (Operating ROA): The company's Operating ROA has fluctuated significantly over the years, ranging from as high as 60.35% to as low as 5.32%. While there was a notable increase in Operating ROA on February 3, 2024, when it reached 47.41%, the ratio has generally exhibited volatility.
2. Return on assets (ROA): Nordstrom Inc's ROA has shown a relatively stable performance, with values ranging from 1.59% to 3.28% over the period under consideration. The company's ability to generate profits from its assets has been moderate, with the highest ROA recorded on January 31, 2025.
3. Return on total capital: The Return on Total Capital for Nordstrom Inc has displayed significant variation, with percentages fluctuating between 7.25% and 64.28%. The ratio peaked on January 31, 2023, indicating a relatively high return generated from the total capital employed by the company.
4. Return on equity (ROE): Nordstrom Inc's ROE has also experienced fluctuations, with values fluctuating between 15.80% and 33.15%. The company has shown a moderate ability to generate returns for its shareholders, with the highest ROE recorded on January 28, 2023.
Overall, the analysis of Nordstrom Inc's profitability ratios suggests varying performance in terms of operational efficiency, asset utilization, capital management, and shareholder returns over the examined period. It is essential for investors and stakeholders to consider these fluctuations in profitability metrics when assessing the company's financial health and performance.