Nordstrom Inc (JWN)
Financial leverage ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,966,000 | 8,444,000 | 8,444,000 | 8,745,000 | 8,745,000 |
| Total stockholders’ equity | US$ in thousands | 1,140,000 | 848,000 | 848,000 | 739,000 | 739,000 |
| Financial leverage ratio | 7.86 | 9.96 | 9.96 | 11.83 | 11.83 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,966,000K ÷ $1,140,000K
= 7.86
The financial leverage ratio of Nordstrom Inc has shown a declining trend over the past years, decreasing from 11.83 in January 2023 to 7.86 in January 2025. This indicates that the company is relying less on debt to finance its operations and is becoming less leveraged over time. A lower financial leverage ratio suggests a stronger financial position and reduced risk of financial distress. Nordstrom Inc's decreasing leverage ratio may be a result of strategic decisions to manage its debt levels effectively and improve its overall financial health.
Peer comparison
Jan 31, 2025
Company name
Symbol
Financial leverage ratio
Nordstrom Inc
JWN
7.86
Abercrombie & Fitch Company
ANF
2.47
American Eagle Outfitters Inc
AEO
2.05
Buckle Inc
BKE
2.15
Ross Stores Inc
ROST
2.71
The Gap, Inc.
GAP
3.64
The TJX Companies Inc
TJX
3.78
Urban Outfitters Inc
URBN
1.83