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Case Study Of Initial Stock Report: Kelly Services Inc.

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Initial Stock Report: Kelly Services Inc Kelly Services Inc. is a publicly traded company on NASDAQ. The company is listed under the ticker symbol KELYA. The company is a workforce solutions provider that began in 1946 with a corporate headquarters in Troy, Michigan. Kelly Services Inc. is a leader in the staffing world. They provide outsourcing and consulting services in addition to temporary, temporary-to-hire and direct hire staffing services. Kelly provides staff employment to over 7,000 people around the globe, and in 2015 they provided employment opportunity to over 550,000 individuals by matching them with their clients. Kelly Services is listed as 467 on the Fortune 500.
The demand for staffing services continue to increase, and Kelly …show more content…
I wanted to research the success of this company, and see how the industry played out in the market. I wanted to evaluate their financials as a worldwide company in comparison to smaller companies that are just located within the United States.
Kelly Services Inc. appears to have good short term financial standings based on their liquidity ratios listed below:
Liquidity Ratio Name Liquidity Ratio Amount
Current Ratio 1.50
Quick Ratio 1.50
Cash Ratio .05
Kelly Service Inc (KELYA) Stock Analysis - GuruFocus.com. (n.d.). Retrieved November 07, 2016, from http://www.gurufocus.com/stock/KELYA
Kelly Service Inc (NASDAQ). (n.d.). Retrieved November 07, 2016, from http://www.marketwatch.com/search?q=kelya

Kelly Services cash ratio is considered to be very low, but based on what I have read, a low cash ratio is not a significant issue. It is not a common practice to maintain a large amount of cash on your balance sheet. It is better to utilize those funds for investments, and paying stockholders. The company appears to have a low amount of debt; about 3% of assets are financed by debt. The ratios below show evidence of a conservative company in a creditors perspective, and interest ratio show a strong financial company.
Debt Ratio Name Debt Ratio

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