Nordstrom Inc (JWN)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,966,000 | 9,320,000 | 8,643,000 | 8,476,000 | 8,444,000 | 8,444,000 | 9,013,000 | 9,013,000 | 8,801,000 | 8,801,000 | 8,828,000 | 8,828,000 | 8,745,000 | 8,745,000 | 9,395,000 | 9,395,000 | 9,162,000 | 9,162,000 | 9,174,000 | 8,869,000 |
| 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 |
| Financial leverage ratio | 7.86 | 9.44 | 9.12 | 10.14 | 9.96 | 9.96 | 12.36 | 12.36 | 13.06 | 13.06 | 16.02 | 16.02 | 11.83 | 11.83 | 15.50 | 15.50 | 13.82 | 13.82 | 15.58 | 15.27 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,966,000K ÷ $1,140,000K
= 7.86
Based on the financial leverage ratio data provided for Nordstrom Inc, we observe fluctuations in the ratio over the periods reported. The financial leverage ratio indicates the proportion of the company's debt in relation to its equity, reflecting the extent to which Nordstrom utilizes debt to finance its operations and investments.
The financial leverage ratio for Nordstrom varied between 7.86 to 16.02 during the period covered. A higher leverage ratio suggests that Nordstrom relies more on debt financing, which can amplify returns on equity in favorable circumstances but also increases financial risk, especially in times of economic downturns or financial instability.
Nordstrom experienced a decrease in its financial leverage ratio from January 2024 to October 2024, signaling a reduction in the company's reliance on debt to support its operations. A declining leverage ratio may indicate improved financial stability and reduced risk exposure, providing a more favorable outlook to investors and creditors.
It's essential for investors and stakeholders to closely monitor Nordstrom's financial leverage ratio trends over time to assess its financial health, risk profile, and ability to meet its debt obligations. Fluctuations in the financial leverage ratio can signify changes in the company's capital structure and financing strategies, impacting its overall financial performance and sustainability.
Peer comparison
Jan 31, 2025