Nordstrom Inc (JWN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.31 | 0.29 | 0.30 | 0.30 | 0.33 | 0.30 | 0.31 | 0.31 | 0.32 | 0.30 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.75 | 0.78 | 0.79 | 0.83 | 0.79 | 0.82 | 0.81 | 0.83 | 0.83 | 0.89 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
| 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 |
Nordstrom Inc's solvency ratios indicate the company's ability to meet its financial obligations in the long term. The debt-to-assets ratio has remained relatively stable, fluctuating between 0.29 and 0.33 over the past few quarters, suggesting that Nordstrom's debt levels in relation to its total assets have been well-managed.
However, the debt-to-capital ratio and debt-to-equity ratio have shown more significant fluctuations, with the debt-to-capital ratio ranging from 0.75 to 0.89 and the debt-to-equity ratio ranging from 3.08 to 7.94. These ratios indicate the extent to which Nordstrom relies on debt to finance its operations. A decreasing trend in these ratios would generally be viewed positively, as it would suggest that the company is reducing its reliance on debt.
The financial leverage ratio, which measures the proportion of the company's total assets that are financed by debt, has shown significant variability, ranging from 9.96 to 56.22 over the periods analyzed. A high financial leverage ratio can indicate higher financial risk, as the company may struggle to repay its debt if earnings decline.
Overall, while Nordstrom's debt ratios have shown some fluctuations, monitoring these metrics over time can provide valuable insights into the company's financial health and its ability to weather economic downturns. It is essential for Nordstrom to strike a balance between debt and equity financing to maintain a healthy solvency position and ensure long-term stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.41 | 2.11 | 1.09 | 1.10 | 3.63 | 4.31 | 5.08 | 4.51 | 2.00 | 0.85 | 0.74 | -1.12 | -5.78 | -4.60 | -4.89 | -0.92 | 7.63 | 9.10 | 7.69 | 7.61 |
The interest coverage ratio of Nordstrom Inc, which measures the company's ability to cover interest expenses with its operating income, has displayed fluctuations over the past several quarters.
From February 3, 2024, to May 4, 2019, the interest coverage ratio has ranged from -5.78 to 9.10. Notably, the highest ratio was observed in November 2, 2019, at 9.10, indicating strong earnings relative to interest costs. Conversely, the lowest ratio occurred on May 1, 2021, at -5.78, implying challenges in generating sufficient operating income to cover interest obligations during that period.
Overall, the trend in the interest coverage ratio of Nordstrom Inc shows variability, with some periods indicating strong ability to cover interest expenses, while other periods suggest potential strain on the company's financial health in meeting interest payments from its operational earnings. Investors and stakeholders may need to closely monitor this metric to assess the company's financial viability and debt-servicing capability.