Analyze credit risk in the past and current yearsAnalyze profitability in the past and current years Changes (%)2019-2020 2018-20193.161% 3.599% 2.891% -12.186% 24.519%(1)(2)(3)Nordstrom202020192018ROEDisaggregation 1ROAFL (Financial Leverage)ROA × FLDisaggregation 2PM (Profit Margin)AT (Asset Turnover)FL9.975%3.161% 3.599% 2.891% -12.186%5.629% 7.050% 5.472% -20.151% 28.836%-3.351%24.519%0.5620.5110.5283.195% 3.556% 2.823% -10.153% 25.953%2.289%-3.351%3.161% 3.599% 2.891% -12.186% 24.519%1.7621.9821.938-11.127%0.5620.5110,5289.975%РМХАТХFLNordstrom2020201920182017 2020-2019 2019-2018TIE7.089-0.98%14.42%-34.46%-50.44%-8.05%-10.29%7.1607.4236.607-3.54%EBITDA CoverageCash from operations to total debtFree Operating CF to total debt12.78211.8930.5660.2771.0700.3980.47414.62512.837-0.44%0.3050.4930.2360.465-5.73%0.2300.9980.327-2.28%-6.30%-18.93%-4.12%0.114Current ratio0.9181.065Quick ratioLiabilities-to-Equity ratioTotal debt to equity ratioCredit Rating0.2930.40327.59%79.80%0.5640.4420.4610.3160.1760.1830.199-4.16%BBB-

Credit analysis is the process of analysing the possibility of the borrower of defaulting the…

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

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

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-

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