Nordstrom Inc (JWN)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,444,000 | 9,013,000 | 8,801,000 | 8,828,000 | 8,745,000 | 9,395,000 | 9,162,000 | 9,174,000 | 8,869,000 | 9,534,000 | 9,230,000 | 9,333,000 | 9,538,000 | 9,811,000 | 9,535,000 | 9,969,000 | 9,737,000 | 10,075,000 | 9,935,000 | 9,338,000 |
| 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 |
| Financial leverage ratio | 9.96 | 12.36 | 13.06 | 16.02 | 11.83 | 15.50 | 13.82 | 15.58 | 15.27 | 26.56 | 34.44 | 56.22 | 31.27 | 38.93 | 54.80 | 25.11 | 9.95 | 11.84 | 13.09 | 14.34 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,444,000K ÷ $848,000K
= 9.96
The financial leverage ratio of Nordstrom Inc has shown fluctuations over the historical period provided. The ratio measures the proportion of the company's debt to its equity, indicating the extent to which the company is reliant on debt financing.
From February 2024 to July 2023, the financial leverage ratio increased steadily, indicating a higher level of debt relative to equity. This suggests that the company may have been taking on more debt during this period. Notably, the ratio peaked in July 2021 and May 2021, reaching levels of 56.22 and 54.80, respectively. These high ratios indicate a significant reliance on debt to finance operations.
Subsequently, there was a decrease in the financial leverage ratio from July 2021 to November 2019, suggesting a reduction in the company's debt relative to equity. The ratio hit its lowest point in February 2020 at 9.95, indicating a shift towards a more equity-heavy capital structure during that period.
Overall, the fluctuating trend in Nordstrom Inc's financial leverage ratio indicates varying degrees of debt utilization and equity financing over the historical period analyzed. It is important for investors and stakeholders to closely monitor these ratios to assess the company's risk profile and financial health.
Peer comparison
Feb 3, 2024