Analyze profitability in the past and current years; Can you find patterns or trends over the three years?

How do you forecast their future profitability? What is your reasoning?

Analyze credit risk in the past and current years (You may obtain information about firms credit ratings from financial articles as well); trend analysis

Forecast firms credit conditions and discuss firms past, current, and future (desired) capital structure

2017 2020 2019 2018 4.056 3.844 Nordstrom Days Sales Outstanding Days Inventory Outstanding Days Payable Outstanding Cash Conversion Cycle 3.372 71.976 71.626 72.391 48.074 45.985 52.056 23.414 27.274 30.462 Nordstrom Equity Assets Sales NI EBT Interest Depreciation & amortization Operating cash flow Capital expenditures Short-term debt Long-term debt Current assets Current liabilities Cash short-term investments Receivables Total liabilities Inventories COGS Accounts Payable 2020 2019 979 873 977 9,737 7,886 8,115 15,524 15,860 15,478 496 564 437 682 733 790 112 119 123 844 669 666 1,495 1,296 1,400 935 654 731 354 110 157 4,551 2,677 2,681 3,230 3,374 3,503 3,520 3,381 3,289 853 957 1,181 2018 870 7,858 14,757 354 684 122 645 1,658 846 167 2,763 3,242 3,029 1,007 (1) (2) Changes (%) 2020 2019 2018 2019-2020 2018-2019 3.161% 3.599% 3.599% 2.891% -12.186% 24.519% 28.836% Nordstrom ROE Disaggregation 1 ROA FL (Financial Leverage) ROA X FL Disaggregation 2 PM (Profit Margin) AT (Asset Turnover) FL PMXATXFL 5.629% 7.050% 5.472% -20.151% 0.562 0.511 0.528 9.975% 3.161% 3.599% 2.891% -12.186% -3.351% 24.519% 0 0 0 0 3.195% 1.762 0.562 3.556% 2.823% -10.153% 1.982 1.938] -11.127% 0.511 0.528 9.975% 3.599% 2.891% -12.186% 25.953% 2.289% -3.351% 24.519% 199 6,988 3.161% 179 8,758 1,920 9,932 1,466 148 7,013 1,978 10,155 1,367 145 7,138 2,027 9,890 1,308 1,896 2019 2018 9,440 1,184 2020 7.089 7.160 7.423 14.42% 12.7821 0.465 0.230 Nordstrom TIE EBITDA Coverage Cash from operations to total debt Free Operating CF to total debt Current ratio Quick ratio Liabilities-to-Equity ratio Total debt to equity ratio Credit Rating 14.625 0.305 0.114 0.918 0.293 0.564 12.837 0.493 0.236 1.065 0.403 2017 2020-2019 2019-2018 6.607 -0.98% -3.54% 11.893 -0.44% 0.566 -34.46% -5.73% 0.277 -50.44% -2.28% 1.070 -8.05% -6.30% 0.398 -10.29% -18.93% 0.474 27.59% -4.12% 0.199 79.80% -4.16% 0.998 0.327 0.461 0.442 0.176 0.316 0.183 BBB- 2017 2020 2019 2018 4.056 3.844 Nordstrom Days Sales Outstanding Days Inventory Outstanding Days Payable Outstanding Cash Conversion Cycle 3.372 71.976 71.626 72.391 48.074 45.985 52.056 23.414 27.274 30.462 Nordstrom Equity Assets Sales NI EBT Interest Depreciation & amortization Operating cash flow Capital expenditures Short-term debt Long-term debt Current assets Current liabilities Cash short-term investments Receivables Total liabilities Inventories COGS Accounts Payable 2020 2019 979 873 977 9,737 7,886 8,115 15,524 15,860 15,478 496 564 437 682 733 790 112 119 123 844 669 666 1,495 1,296 1,400 935 654 731 354 110 157 4,551 2,677 2,681 3,230 3,374 3,503 3,520 3,381 3,289 853 957 1,181 2018 870 7,858 14,757 354 684 122 645 1,658 846 167 2,763 3,242 3,029 1,007 (1) (2) Changes (%) 2020 2019 2018 2019-2020 2018-2019 3.161% 3.599% 3.599% 2.891% -12.186% 24.519% 28.836% Nordstrom ROE Disaggregation 1 ROA FL (Financial Leverage) ROA X FL Disaggregation 2 PM (Profit Margin) AT (Asset Turnover) FL PMXATXFL 5.629% 7.050% 5.472% -20.151% 0.562 0.511 0.528 9.975% 3.161% 3.599% 2.891% -12.186% -3.351% 24.519% 0 0 0 0 3.195% 1.762 0.562 3.556% 2.823% -10.153% 1.982 1.938] -11.127% 0.511 0.528 9.975% 3.599% 2.891% -12.186% 25.953% 2.289% -3.351% 24.519% 199 6,988 3.161% 179 8,758 1,920 9,932 1,466 148 7,013 1,978 10,155 1,367 145 7,138 2,027 9,890 1,308 1,896 2019 2018 9,440 1,184 2020 7.089 7.160 7.423 14.42% 12.7821 0.465 0.230 Nordstrom TIE EBITDA Coverage Cash from operations to total debt Free Operating CF to total debt Current ratio Quick ratio Liabilities-to-Equity ratio Total debt to equity ratio Credit Rating 14.625 0.305 0.114 0.918 0.293 0.564 12.837 0.493 0.236 1.065 0.403 2017 2020-2019 2019-2018 6.607 -0.98% -3.54% 11.893 -0.44% 0.566 -34.46% -5.73% 0.277 -50.44% -2.28% 1.070 -8.05% -6.30% 0.398 -10.29% -18.93% 0.474 27.59% -4.12% 0.199 79.80% -4.16% 0.998 0.327 0.461 0.442 0.176 0.316 0.183 BBB