Nordstrom Inc (JWN)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 2,854,000 | 2,853,000 | 2,851,000 | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Debt-to-equity ratio | 3.08 | 3.58 | 3.87 | 4.73 | 3.86 | 4.71 | 4.30 | 4.85 | 4.91 | 7.94 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
February 3, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,612,000K ÷ $848,000K
= 3.08
The debt-to-equity ratio of Nordstrom Inc has shown fluctuations over the time period provided. The ratio ranged from 0.00 to 7.94, indicating varying levels of leverage during the period. Generally, a higher debt-to-equity ratio suggests that the company is financing its operations more through debt, which may increase financial risk.
Specifically, we observed a significant increase in the ratio from 3.08 in February 2024 to 7.94 in October 2021, indicating a substantial rise in debt relative to equity during this period. This spike in the ratio could raise concerns about the company's ability to manage its debt levels effectively, as a higher ratio implies higher financial leverage.
Furthermore, the ratio dropping to 0.00 from July 2021 onwards might suggest possible changes in the company's capital structure or debt repayment strategy. A sudden drop to 0.00 could signal a shift towards a more conservative financial approach with less reliance on debt financing.
Overall, the trend in Nordstrom Inc's debt-to-equity ratio highlights fluctuations in its capital structure over time, indicating potential alterations in its financing decisions and risk management strategies. Further analysis of the company's financial statements and factors influencing its capital structure changes would provide deeper insights into its financial health and risk profile.
Peer comparison
Feb 3, 2024