Nordstrom Inc (JWN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 494,000 | 468,000 | 630,000 | -688,000 | -565,000 | -1,946,000 | -1,999,000 | -1,130,000 | -1,491,000 | -139,000 | -144,000 | 118,000 | 380,000 | 395,000 | 410,000 | 480,000 | 777,000 | 874,000 | 799,000 | 853,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 2,612,000 | — | — | 2,611,000 | — | 2,609,000 | — | 2,608,000 | — | 2,856,000 | — | 2,855,000 | — | 2,853,000 | — | — |
| 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 |
| Return on total capital | 43.33% | 47.42% | 66.46% | -82.30% | -16.33% | -229.48% | -274.21% | -33.83% | -221.22% | -4.23% | -26.13% | 3.74% | 51.42% | 10.99% | 67.66% | 13.87% | 117.19% | 24.86% | 135.65% | 146.82% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $494,000K ÷ ($—K + $1,140,000K)
= 43.33%
The return on total capital for Nordstrom Inc has shown significant fluctuations over the past few years. From January 2022 to April 2022, the return was relatively high, indicating efficient utilization of capital. However, there was a sharp decline in July 2022, followed by a recovery in August 2022. Subsequently, the return on total capital fluctuated between positive and negative values, reflecting a mix of profitable and unprofitable periods.
The company experienced negative returns in the latter part of 2023 and early 2024, suggesting challenges in generating profits relative to the capital invested. However, the return improved in July 2024 and continued to increase in the subsequent quarters.
Overall, Nordstrom Inc's return on total capital has exhibited volatility, with periods of high returns followed by downturns. It is essential for investors and stakeholders to closely monitor these fluctuations and understand the underlying factors influencing the company's profitability and capital efficiency.
Peer comparison
Jan 31, 2025