Analyze credit risk in the past and current years Analyze profitability in the past and current years

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 90PSB
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Analyze credit risk in the past and current years

Analyze profitability in the past and current years

Changes (%)
2019-2020 2018-2019
3.161% 3.599% 2.891% -12.186% 24.519%
(1)
(2)
(3)
Nordstrom
2020
2019
2018
ROE
Disaggregation 1
ROA
FL (Financial Leverage)
ROA × FL
Disaggregation 2
PM (Profit Margin)
AT (Asset Turnover)
FL
9.975%
3.161% 3.599% 2.891% -12.186%
5.629% 7.050% 5.472% -20.151% 28.836%
-3.351%
24.519%
0.562
0.511
0.528
3.195% 3.556% 2.823% -10.153% 25.953%
2.289%
-3.351%
3.161% 3.599% 2.891% -12.186% 24.519%
1.762
1.982
1.938
-11.127%
0.562
0.511
0,528
9.975%
РМХАТХFL
Nordstrom
2020
2019
2018
2017 2020-2019 2019-2018
TIE
7.089
-0.98%
14.42%
-34.46%
-50.44%
-8.05%
-10.29%
7.160
7.423
6.607
-3.54%
EBITDA Coverage
Cash from operations to total debt
Free Operating CF to total debt
12.782
11.893
0.566
0.277
1.070
0.398
0.474
14.625
12.837
-0.44%
0.305
0.493
0.236
0.465
-5.73%
0.230
0.998
0.327
-2.28%
-6.30%
-18.93%
-4.12%
0.114
Current ratio
0.918
1.065
Quick ratio
Liabilities-to-Equity ratio
Total debt to equity ratio
Credit Rating
0.293
0.403
27.59%
79.80%
0.564
0.442
0.461
0.316
0.176
0.183
0.199
-4.16%
BBB-
Transcribed Image Text:Changes (%) 2019-2020 2018-2019 3.161% 3.599% 2.891% -12.186% 24.519% (1) (2) (3) Nordstrom 2020 2019 2018 ROE Disaggregation 1 ROA FL (Financial Leverage) ROA × FL Disaggregation 2 PM (Profit Margin) AT (Asset Turnover) FL 9.975% 3.161% 3.599% 2.891% -12.186% 5.629% 7.050% 5.472% -20.151% 28.836% -3.351% 24.519% 0.562 0.511 0.528 3.195% 3.556% 2.823% -10.153% 25.953% 2.289% -3.351% 3.161% 3.599% 2.891% -12.186% 24.519% 1.762 1.982 1.938 -11.127% 0.562 0.511 0,528 9.975% РМХАТХFL Nordstrom 2020 2019 2018 2017 2020-2019 2019-2018 TIE 7.089 -0.98% 14.42% -34.46% -50.44% -8.05% -10.29% 7.160 7.423 6.607 -3.54% EBITDA Coverage Cash from operations to total debt Free Operating CF to total debt 12.782 11.893 0.566 0.277 1.070 0.398 0.474 14.625 12.837 -0.44% 0.305 0.493 0.236 0.465 -5.73% 0.230 0.998 0.327 -2.28% -6.30% -18.93% -4.12% 0.114 Current ratio 0.918 1.065 Quick ratio Liabilities-to-Equity ratio Total debt to equity ratio Credit Rating 0.293 0.403 27.59% 79.80% 0.564 0.442 0.461 0.316 0.176 0.183 0.199 -4.16% BBB-
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