1) compute the inventory turnover (INVT) for fiscal year 2019, interpret their turnover ratios

2) compute property, plant and equipment turnover (PPET) for fiscal year 2019 both with and without including the operating lease right-of-use assets. Which measure do you think is more reflective of property, plant and equipment turnover and why?

3) Evaluate liquidity and solvency. Compute each company’s current ratio, quick ratio times interest earned ratio, and debt-to-equity ratio for the most recent year.

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Nordstrom, Inc. Consolidated Statements of Earnings (In millions except per share amounts) Fiscal year Net sales Credit card revenues, net Total revenues Cost of sales and related buying and occupancy costs Selling, general and administrative expenses Earnings before interest and income taxes Interest expense, net Earnings before income taxes Income tax expense Net earnings Earnings per share: Basic Diluted gle Chrome weighted-average shares outstanding: Basic Diluted 2019 $15,132 392 15,524 (9,932) (4,808) 784 (102) 682 (186) $496 $3.20 $3.18 155.2 156.1 The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. Nordstrom, Inc. Consolidated Statements of Comprehensive Earnings (In millions) Fiscal year Net earnings Postretirement plan adjustments, net of tax of $9, ($5) and $2 Foreign currency translation adjustment Comprehensive net earnings The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 2019 $496 (27) (4) $465 2018 $15,480 380 15,860 (10,155) (4,868) 837 (104) 733 (169) $564 $3.37 $3.32 167.3 170.0 2018 $564 14 (17) $561 2017 $15,137 341 15,478 (9,890) (4,662) 926 (136) 790 (353) $437 $2.62 $2.59 166.8 168.9 2017 $437 (6) 20 $451 Nordstrom, Inc. Consolidated Statements of Earnings (In millions except per share amounts) Fiscal year Net sales Credit card revenues, net Total revenues Cost of sales and related buying and occupancy costs Selling, general and administrative expenses Earnings before interest and income taxes Interest expense, net Earnings before income taxes Income tax expense Net earnings Earnings per share: Basic Diluted gle Chrome weighted-average shares outstanding: Basic Diluted 2019 $15,132 392 15,524 (9,932) (4,808) 784 (102) 682 (186) $496 $3.20 $3.18 155.2 156.1 The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. Nordstrom, Inc. Consolidated Statements of Comprehensive Earnings (In millions) Fiscal year Net earnings Postretirement plan adjustments, net of tax of $9, ($5) and $2 Foreign currency translation adjustment Comprehensive net earnings The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 2019 $496 (27) (4) $465 2018 $15,480 380 15,860 (10,155) (4,868) 837 (104) 733 (169) $564 $3.37 $3.32 167.3 170.0 2018 $564 14 (17) $561 2017 $15,137 341 15,478 (9,890) (4,662) 926 (136) 790 (353) $437 $2.62 $2.59 166.8 168.9 2017 $437 (6) 20 $451

Answer rating: 100% (QA)

Answer 1 Inventory turnover ratio 510 21 Property pla... View the full answer