Nordstrom Inc (JWN)
Interest coverage
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 495,000 | 251,000 | 284,000 | 475,000 | 465,000 |
| Interest expense | US$ in thousands | 102,000 | 104,000 | 137,000 | 128,000 | 128,000 |
| Interest coverage | 4.85 | 2.41 | 2.07 | 3.71 | 3.63 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $495,000K ÷ $102,000K
= 4.85
The interest coverage ratio for Nordstrom Inc has shown variability over the past five years. In January 2023, the interest coverage was 3.63, indicating that the company earned 3.63 times the amount needed to cover its interest expenses. By January 2025, this ratio improved to 4.85, suggesting a stronger ability to meet interest obligations. However, there was a decline in the interest coverage ratio in the interim years, with the lowest point recorded in January 2024 at 2.07. This could imply some pressure on Nordstrom's ability to cover interest payments during that period, although the ratio rebounded slightly in February 2024 to 2.41. Overall, Nordstrom's interest coverage trend indicates a mix of fluctuations and improvements, highlighting the importance of closely monitoring the company's financial performance and debt management strategies.
Peer comparison
Jan 31, 2025