Nordstrom Inc (JWN)

Return on assets (ROA)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Net income	US$ in thousands	134,000	245,000	178,000	-690,000	496,000
Total assets	US$ in thousands	8,444,000	8,745,000	8,869,000	9,538,000	9,737,000
ROA		1.59%	2.80%	2.01%	-7.23%	5.09%

February 3, 2024 calculation

ROA = Net income ÷ Total assets
= $134,000K ÷ $8,444,000K
= 1.59%

The return on assets (ROA) of Nordstrom Inc has varied significantly over the past five years. In the most recent fiscal year ending on February 3, 2024, the ROA was 1.59%, indicating a decrease compared to the previous year when it was 2.80%. This decline suggests that Nordstrom was less efficient in generating profit from its assets in the recent fiscal year.

Looking back further, the ROA in January 2022 stood at 2.01%, which was a positive improvement from the negative ROA of -7.23% in January 2021. The significant negative ROA in 2021 signifies that Nordstrom's assets were not effectively utilized to generate profits or experienced losses during that fiscal year.

On a more positive note, in January 2020, Nordstrom recorded a robust ROA of 5.09%, indicating that the company was highly efficient in generating profit from its assets at that time. This strong performance in 2020 could be attributed to effective asset management and profitability strategies implemented by the company.

Overall, the fluctuating ROA figures in the past five years suggest that Nordstrom has experienced varying levels of efficiency in utilizing its assets to generate profits. It is important for investors and stakeholders to monitor Nordstrom's ROA closely to assess the company's effectiveness in generating returns from its asset base.