Nordstrom Inc (JWN)
Return on equity (ROE)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 133,000 | 118,000 | 31,000 | 20,000 | 245,000 | 326,000 | 410,000 | 364,000 | 178,000 | 11,000 | 0 | -335,000 | -690,000 | -530,000 | -457,000 | -61,000 | 497,000 | 552,000 | 493,000 | 514,000 |
| Total stockholders’ equity | US$ in thousands | 848,000 | 729,000 | 674,000 | 551,000 | 739,000 | 606,000 | 663,000 | 589,000 | 581,000 | 359,000 | 268,000 | 166,000 | 305,000 | 252,000 | 174,000 | 397,000 | 979,000 | 851,000 | 759,000 | 651,000 |
| ROE | 15.68% | 16.19% | 4.60% | 3.63% | 33.15% | 53.80% | 61.84% | 61.80% | 30.64% | 3.06% | 0.00% | -201.81% | -226.23% | -210.32% | -262.64% | -15.37% | 50.77% | 64.86% | 64.95% | 78.96% |
February 3, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $133,000K ÷ $848,000K
= 15.68%
Nordstrom Inc's return on equity (ROE) has shown significant fluctuations over the provided periods. The ROE has ranged from negative values such as -262.64% to positive values as high as 78.96%. This indicates variability in the company's ability to generate profit from shareholders' equity.
In general, a higher ROE is preferred as it signifies that the company is effectively utilizing shareholders' equity to generate profits. Looking at the trend, Nordstrom's ROE has demonstrated inconsistency with some periods of strong performance followed by periods of lower or negative returns.
The drastic negative ROE figures, such as -201.81%, -226.23%, -210.32%, and -262.64%, could indicate financial distress or poor management of earnings relative to shareholder investments during those periods.
On the contrary, the higher positive ROE percentages observed at certain points like 78.96%, 64.95%, and 61.84% demonstrate periods of stronger profitability and efficiency in utilizing equity.
Investors and stakeholders should closely monitor Nordstrom's ROE trend over time to assess the company's financial performance and profitability. It may be beneficial for management to analyze the factors contributing to the fluctuations in ROE and implement strategies to maintain or improve profitability and shareholder value in the future.
Peer comparison
Feb 3, 2024