Nordstrom Inc (JWN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 848,000 | 739,000 | 581,000 | 305,000 | 979,000 |
| ROE | 15.80% | 33.15% | 30.64% | -226.23% | 50.66% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $134,000K ÷ $848,000K
= 15.80%
Nordstrom Inc's return on equity (ROE) has fluctuated significantly over the past five years. In the most recent fiscal year ending February 3, 2024, the ROE stood at 15.80%, representing a decrease from the previous year's figure of 33.15%. This decline suggests a potential decrease in the company's profitability relative to its shareholders' equity.
Looking back at previous years, Nordstrom Inc's ROE was relatively stable and robust. In January 2022, the ROE was 30.64%, indicating a strong return generated on the equity invested by shareholders. However, the company experienced a significant downturn in performance in January 2021, with a negative ROE of -226.23%. This negative figure suggests that Nordstrom Inc incurred a substantial loss that year, surpassing the company's equity base.
Subsequently, Nordstrom Inc managed to recover and deliver a solid ROE of 50.66% in February 2020, indicating a strong rebound in profitability. Overall, the significant fluctuations in Nordstrom Inc's ROE over the past five years highlight the company's varying financial performance and its ability to generate returns on shareholders' equity.
Peer comparison
Feb 3, 2024