Nordstrom Inc (JWN)
Return on assets (ROA)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 294,000 | 134,000 | 134,000 | 245,000 | 245,000 |
| Total assets | US$ in thousands | 8,966,000 | 8,444,000 | 8,444,000 | 8,745,000 | 8,745,000 |
| ROA | 3.28% | 1.59% | 1.59% | 2.80% | 2.80% |
January 31, 2025 calculation
ROA = Net income ÷ Total assets
= $294,000K ÷ $8,966,000K
= 3.28%
Based on the data provided for Nordstrom Inc., the return on assets (ROA) fluctuated over the period analyzed. The ROA was consistent at 2.80% from January 28, 2023, to January 31, 2023. However, there was a decline in the ROA to 1.59% from January 31, 2024, to February 3, 2024. Subsequently, the ROA increased to 3.28% by January 31, 2025.
The return on assets indicates the company's ability to generate profits relative to its total assets. A higher ROA signifies that the company is more efficient in utilizing its assets to generate profits. Nordstrom's fluctuating ROA suggests varying levels of asset efficiency and profitability over the period analyzed, which may be influenced by factors such as operational performance, asset management, and overall financial health.
It is crucial for investors and stakeholders to monitor ROA trends to assess Nordstrom's asset utilization efficiency and profitability performance, as it provides insights into the company's financial health and operational effectiveness.
Peer comparison
Jan 31, 2025