Kohl’s Financial Analysis
Introduction
Kohl 's, KSS is an American department store that has been around since 1946. It is only open in this country and only sells here. It is the second largest store in sales to Macy 's, but the first for the actual number of stores it has. It sells a wide variety of apparel for the family and home furnishings. A recent article by Zacks, states Kohl 's is planning on hiring 3% more seasonal workers then it did last year. Kohl’s have also updated their online and mobile app experience.
Their stock was 45.93 today with a 52 week range of 44.04 to 79.60 (Yahoo). Per Reuters, one year ago their stock was at 56.54, with a peak in April of $79.60. Since then the stock has been going down.
Financial Statement Analysis …show more content…
As of 10/06/2015 Kohl’s current ratio is stronger than the industry average and stronger then Target. For the quick ratio, Kohl’s and Target are both well below the industry average as of 10/06/2015.
Kohl’s current ratio as of 10/06/2015 shows it has $1.77 in current assets for every $1.00 in current liabilities. This shows that Kohl’s has enough assets to pay off any short term debt it owes. Though this isn’t the same for their quick ratio, if you take their current assets minus inventory, they do not show a positive correlation. If needing to settle liabilities Kohl’s would need to sell inventory fast which could result in selling their inventory at a discount and losing money on the …show more content…
Can a company handle the interest expense associated with debt?
Kohl’s, Inc. Kohl’s, Inc. Industry Target Formulas 03/20/15 03/21/14 10/06/2015 10/06/2015 10/06/2015
Debt to Equity Ratio TL/TSE 1.41 1.40 88.88 76.21 91.26
Times Interest Earned EBIT/Int Exp 4.97 5.15 5.00 3.01 3.66
Equity Multiplier TA/TSE 2.40 2.41 Not Reported
Debt Ratio TL/TA .58 .58 Not Reported
Kohl’s long-term solvency ratios have stayed consistent from 03/21/14 to 03/20/15. The only ratio that has a significant loss is times interest earned. Kohl’s and Target debt to equity ratio as of 10/06/2015 is higher than the industry average, though Kohl’s is lower than Target. Kohl’s time’s interest earned as of 10/06/15 is higher than industry average and Target.
Kohl’s debt to equity ratio is high, meaning it is taking on more debt to finance their operations. Their times interest ratio means the company will be able to pay their debt almost five times
Introduction
Kohl 's, KSS is an American department store that has been around since 1946. It is only open in this country and only sells here. It is the second largest store in sales to Macy 's, but the first for the actual number of stores it has. It sells a wide variety of apparel for the family and home furnishings. A recent article by Zacks, states Kohl 's is planning on hiring 3% more seasonal workers then it did last year. Kohl’s have also updated their online and mobile app experience.
Their stock was 45.93 today with a 52 week range of 44.04 to 79.60 (Yahoo). Per Reuters, one year ago their stock was at 56.54, with a peak in April of $79.60. Since then the stock has been going down.
Financial Statement Analysis …show more content…
As of 10/06/2015 Kohl’s current ratio is stronger than the industry average and stronger then Target. For the quick ratio, Kohl’s and Target are both well below the industry average as of 10/06/2015.
Kohl’s current ratio as of 10/06/2015 shows it has $1.77 in current assets for every $1.00 in current liabilities. This shows that Kohl’s has enough assets to pay off any short term debt it owes. Though this isn’t the same for their quick ratio, if you take their current assets minus inventory, they do not show a positive correlation. If needing to settle liabilities Kohl’s would need to sell inventory fast which could result in selling their inventory at a discount and losing money on the …show more content…
Can a company handle the interest expense associated with debt?
Kohl’s, Inc. Kohl’s, Inc. Industry Target Formulas 03/20/15 03/21/14 10/06/2015 10/06/2015 10/06/2015
Debt to Equity Ratio TL/TSE 1.41 1.40 88.88 76.21 91.26
Times Interest Earned EBIT/Int Exp 4.97 5.15 5.00 3.01 3.66
Equity Multiplier TA/TSE 2.40 2.41 Not Reported
Debt Ratio TL/TA .58 .58 Not Reported
Kohl’s long-term solvency ratios have stayed consistent from 03/21/14 to 03/20/15. The only ratio that has a significant loss is times interest earned. Kohl’s and Target debt to equity ratio as of 10/06/2015 is higher than the industry average, though Kohl’s is lower than Target. Kohl’s time’s interest earned as of 10/06/15 is higher than industry average and Target.
Kohl’s debt to equity ratio is high, meaning it is taking on more debt to finance their operations. Their times interest ratio means the company will be able to pay their debt almost five times