Nordstrom Inc (JWN)
Return on equity (ROE)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 383,000 | 352,000 | 351,000 | 296,000 | 402,000 | 405,000 | 408,000 | 136,000 | -136,000 | -154,000 | -172,000 | 13,000 | 198,000 | 205,000 | 212,000 | 252,000 | 472,000 | 546,000 | 484,000 | 528,000 |
| Total stockholders’ equity | US$ in thousands | 1,140,000 | 987,000 | 948,000 | 836,000 | 848,000 | 848,000 | 729,000 | 729,000 | 674,000 | 674,000 | 551,000 | 551,000 | 739,000 | 739,000 | 606,000 | 606,000 | 663,000 | 663,000 | 589,000 | 581,000 |
| ROE | 33.60% | 35.66% | 37.03% | 35.41% | 47.41% | 47.76% | 55.97% | 18.66% | -20.18% | -22.85% | -31.22% | 2.36% | 26.79% | 27.74% | 34.98% | 41.58% | 71.19% | 82.35% | 82.17% | 90.88% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $383,000K ÷ $1,140,000K
= 33.60%
Nordstrom Inc's return on equity (ROE) has shown some fluctuations over the period from January 2022 to January 2025. The ROE started at a high of 90.88% in January 2022 and gradually decreased to 26.79% by January 2023. This significant decrease may suggest a decline in the company's profitability relative to its equity investment.
Subsequently, the ROE turned negative in the following months and continued to fluctuate in negative territory, indicating that Nordstrom Inc may have faced challenges in generating earnings from its equity capital during this period. The lowest ROE was recorded at -31.22% in April 2023.
However, starting from October 2023, Nordstrom Inc's ROE began to recover and showed an upward trend, reaching 55.97% in October 2023. This positive trend continued into 2024 with the ROE ranging between 35.41% and 37.03%. The company managed to maintain a relatively stable ROE around the 35%-37% range until January 2025.
Overall, based on the ROE data provided, Nordstrom Inc experienced a challenging period with declining and negative ROE figures in 2022 and 2023, but managed to improve its profitability performance in the subsequent years. It will be important to monitor future ROE trends to assess the company's ability to generate returns for its equity holders.
Peer comparison
Jan 31, 2025