Nordstrom (FRA:NRD) ROCE % : 18.37% (As of Jan. 2024)

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What is Nordstrom ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Nordstrom's annualized ROCE % for the quarter that ended in Jan. 2024 was 18.37%.

Nordstrom ROCE % Historical Data

The historical data trend for Nordstrom's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Nordstrom ROCE % Chart

Nordstrom Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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14.99

-17.06

9.31

8.60

5.08

Nordstrom Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															13.32	-18.79	14.66	7.91	18.37

Nordstrom ROCE % Calculation

Nordstrom's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	260.712	/	( ( (8115.36 - 2774.72)	+	(7751.592 - 2820.096) )	/ 2 )
	=	260.712	/	( (5340.64	+	4931.496)	/ 2 )
	=	260.712	/	5136.068
	=	5.08 %

Nordstrom's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	914.328	/	( ( (8535.311 - 3512.423)	+	(7751.592 - 2820.096) )	/ 2 )
	=	914.328	/	( ( 5022.888	+	4931.496 )	/ 2 )
	=	914.328	/	4977.192
	=	18.37 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Nordstrom (FRA:NRD) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Nordstrom ROCE % Related Terms

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Nordstrom (FRA:NRD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Nordstrom Inc (FRA:NRD) » Definitions » ROCE %

Comparable Companies

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JWN:USA JWN:Mexico J1WN34:Brazil

Address

1617 Sixth Avenue, Seattle, WA, USA, 98101

Website

https://www.Nordstrom.com

Nordstrom is a fashion retailer that operates about 93 department stores and approximately 260 off-price Nordstrom Rack stores. The company also operates both full- and off-price e-commerce sites, two clearance stores, and seven Local locations. Nordstrom's largest merchandise categories are women's apparel (28% of 2022 sales), shoes (26% of 2022 sales), men's apparel (15% of 2022 sales), and women's accessories (13% of 2022 sales). Nordstrom, which traces its history to a shoe store opened in Seattle in 1901, continues to be partially owned and managed by members of the eponymous family.

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