Nordstrom is in a great shape of financial condition. We can see that Nordstrom shows its consistence and reliably through many of its ratio analysis such as: current ratio, market to book ratio, return on debt to total asset, so forth. For example, lets look at Nordstrom’s market to book ratio which has been keep improving since 2008 at 2.37, and it is continuously growth to 5.21, 4.57, and 5. 28 respectively in 2009, 2010, and 2011; which has always exceeded 1 and would be considered as successful firms’ market according to finance’s definition. Another example, one aspect that has been steadily getting better each year is receivables turnover, which refers to how well the firm manages its receivables; and therefore also day’s sales outstanding has been steadily decreasing which means the firm is collecting receivables on a more timely basis. Thus, Nordstrom’s receivable turnover is consistently improving 4.34, 3.78, 5.36 respectively to year 2009, 2010, 2011.

Nordstrom’s performance has improved consistently since 2008. According to the financial statement, Nordstrom’s net sale has been steady growth from $8,272 million in 2008 to $10,497 million in 2011 which leads to a significant growth in Nordstrom’s gross profit. (From 2,855 to 3,905 million). As an evaluation of the operating efficiency, we can see the gross profit margin, and the net profit margin has been improved well. The gross profit margin and the net profit margin are improving and being stable, which is a positive effect; For example, gross margin increases 0.01% from 2009 to 2010 and stay the same at 0.39 from 2010 to 2011. By valuating the rest of Nordstrom’s profitability ratios, the asset turnover, return on assets, and return on equity, Nordstrom once again is upward looking. Nordstrom’s asset turnover has stayed stable over the past three years; and its returns on assets and equity have