Nordstrom Inc (JWN)
Return on total capital
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 495,000 | 251,000 | 284,000 | 475,000 | 465,000 |
| Long-term debt | US$ in thousands | — | 2,612,000 | — | — | 2,856,000 |
| Total stockholders’ equity | US$ in thousands | 1,140,000 | 848,000 | 848,000 | 739,000 | 739,000 |
| Return on total capital | 43.42% | 7.25% | 33.49% | 64.28% | 12.93% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $495,000K ÷ ($—K + $1,140,000K)
= 43.42%
To analyze Nordstrom Inc's return on total capital based on the provided data, we calculate the return on total capital for each respective fiscal year.
- In January 28, 2023, Nordstrom Inc achieved a return on total capital of 12.93%. This indicates that for every dollar of total capital employed, the company generated a return of 12.93 cents.
- By January 31, 2023, Nordstrom Inc significantly increased its return on total capital to 64.28%, reflecting an efficient utilization of capital resources and improved profitability.
- The return on total capital slightly decreased to 33.49% in January 31, 2024, demonstrating a solid performance in generating returns relative to capital invested.
- February 3, 2024, saw a decline in the return on total capital to 7.25%, which may signal challenges in optimizing capital efficiency or lower profitability for the company.
- Nordstrom Inc's return on total capital rebounded to 43.42% by January 31, 2025, indicating a strong recovery in capital productivity and profitability for the fiscal year.
Overall, Nordstrom Inc's return on total capital fluctuated over the years, with some periods demonstrating exceptional performance while others showing a need for improvement in capital utilization and profitability management.
Peer comparison
Jan 31, 2025