Nordstrom Inc (JWN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,140,000 | 848,000 | 848,000 | 739,000 | 739,000 |
| ROE | 25.79% | 15.80% | 15.80% | 33.15% | 33.15% |
January 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $294,000K ÷ $1,140,000K
= 25.79%
Nordstrom Inc's return on equity (ROE) has fluctuated over the past few years. In January 2023, the ROE stood at a healthy 33.15%, indicating that the company was efficient in generating profits from its shareholder equity. This level was sustained in the following year, showing consistency in the company's profitability.
However, there was a noticeable decrease in ROE to 15.80% in January 2024 and this level remained the same in February 2024. This decline may indicate a decrease in the company's ability to generate profits with the same level of equity, which could be attributed to various factors such as changes in financial leverage or declining profitability.
Fortunately, Nordstrom Inc managed to improve its ROE to 25.79% in January 2025, showing a recovery in profitability and efficiency in utilizing shareholder equity. It will be important for investors and stakeholders to monitor future ROE trends to assess the company's ability to generate returns on their investment.
Peer comparison
Jan 31, 2025