Nordstrom Inc (JWN)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,003,000 | 5,278,000 | 4,707,000 | 1,941,000 | 5,872,000 |
| Total assets | US$ in thousands | 8,444,000 | 8,745,000 | 8,869,000 | 9,538,000 | 9,737,000 |
| Operating ROA | 47.41% | 60.35% | 53.07% | 20.35% | 60.31% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,003,000K ÷ $8,444,000K
= 47.41%
Operating Return on Assets (Operating ROA) measures a company's ability to generate operating profits from its assets. Nordstrom Inc's Operating ROA has fluctuated over the past five years, indicating varying levels of efficiency in utilizing its assets to generate operating income.
In the most recent fiscal year ending February 3, 2024, Nordstrom's Operating ROA was 47.41%, a decrease from the prior year's 60.35%. This decrease suggests that Nordstrom was less efficient in generating operating income from its assets in the latest period.
Comparing the latest data to the figures from the previous years, Nordstrom's Operating ROA was highest at 60.35% in January 28, 2023, suggesting a peak in efficiency at that time. The Operating ROA was also notably high in February 1, 2020, at 60.31%.
However, there was a significant decrease in Operating ROA to 20.35% in January 30, 2021, indicating a period of decreased efficiency in generating operating income from its assets.
Overall, Nordstrom Inc's Operating ROA has shown variability over the past five years, with fluctuations potentially influenced by factors such as operational efficiency, asset utilization, and economic conditions. It is important for Nordstrom to monitor and improve its Operating ROA to ensure optimal utilization of assets and sustainable profitability in the long term.
Peer comparison
Feb 3, 2024