Using historical financial statements (income statements and balance sheets) for Nordstrom, analyze the financial performance and changes to the firm over a ten-year time period using an end-point analysis framework similar to that used in the analysis of Coca-Cola (Attached for example). You should calculate the same ratios and financial measures as were provided for the Coca-Cola case. Next, you will identify the major changes in Nordstrom’s financial performance over this time period. Include an analysis of:
1) overall changes/growth in the firm’s revenues, assets, and liabilities;
2) common-size statements;
3) ratio analysis; and
4) analysis using the DuPont model.
You will be required to provide the conclusions regarding which way the major ratio categories are trending. An acceptable conclusion might be, for example: “profitability has increased over the last five years as evidenced by increasing net margin and gross margin ratios. This is the result of a decrease in cost of goods sold, higher margins because of increased market share, etc.” You should also research the notes to your company’s 10K to determine the probable causes of these changes (“Leverage increased because the company issued $50M in bonds to pay for a plant expansion.”).