Nordstrom Inc (JWN)
Return on total capital
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 251,000 | 465,000 | 492,000 | -1,047,000 | 784,000 |
| Long-term debt | US$ in thousands | 2,612,000 | 2,856,000 | 2,853,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 848,000 | 739,000 | 581,000 | 305,000 | 979,000 |
| Return on total capital | 7.25% | 12.93% | 14.33% | -343.28% | 80.08% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $251,000K ÷ ($2,612,000K + $848,000K)
= 7.25%
Nordstrom Inc's return on total capital has shown variability over the past five years, as evidenced by the following figures: 7.25% in 2024, 12.93% in 2023, 14.33% in 2022, -343.28% in 2021, and 80.08% in 2020.
The return on total capital was relatively stable in 2022 and 2023, ranging between 12.93% and 14.33%. However, in 2021, there was a significant decline to -343.28%, indicating a substantial loss relative to the total capital employed. The sharp decrease in 2021 could be attributed to various factors such as write-downs, impairment charges, or operational challenges.
In contrast, the return on total capital rebounded strongly in 2020, reaching 80.08%, signifying a notable improvement in the company's efficiency in generating returns from its total capital. This surge may have been influenced by strategic initiatives, improved operational performance, or other favorable market conditions.
Overall, Nordstrom Inc's return on total capital has displayed fluctuations in recent years, highlighting the importance of consistent monitoring and analysis to understand the company's financial performance and effectiveness in utilizing its capital resources.
Peer comparison
Feb 3, 2024