Nordstrom Inc (JWN)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 495,000 | 4,003,000 | 535,000 | 465,000 | 5,278,000 |
| Total assets | US$ in thousands | 8,966,000 | 8,444,000 | 8,444,000 | 8,745,000 | 8,745,000 |
| Operating ROA | 5.52% | 47.41% | 6.34% | 5.32% | 60.35% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $495,000K ÷ $8,966,000K
= 5.52%
Nordstrom Inc's operating return on assets (operating ROA) has shown fluctuations over the past few years. In January 2023, the operating ROA was exceptionally high at 60.35%, indicating efficient utilization of assets to generate operating profits. However, in the subsequent year, by January 2024, the operating ROA dropped to 5.32%, suggesting a decrease in operational efficiency and profitability.
There was a slight improvement in February 2024, with the operating ROA increasing to 6.34%. This uptick may indicate some efforts to enhance asset productivity, although the return remained relatively low compared to previous peak levels.
By January 2025, the operating ROA stood at 5.52%, showing a marginal improvement from the previous year but still below the peak levels of 2023. Overall, Nordstrom Inc's operating ROA has been volatile, with periods of high and low efficiency in utilizing assets to generate operating earnings. Monitoring this ratio closely can provide insights into the company's operational performance and efficiency in capital allocation.
Peer comparison
Jan 31, 2025