Kohl 's A Competitive Advantage Over Competitors Essay

705 Words Jan 23rd, 2015 3 Pages
Kohl’s Corporation has a market cap of $ 12,150,841,350 billion, and it is one of the successful store chains in the United States. It offers a variety and exclusive merchandise to customers in an exciting and friendly environment (www.kohlscorporation.com). Also, Kohl’s keeps low retail prices through a low-cost, limited staffing, structure and continuing management information systems, as well as advertising. I use the DuPont analysis for Kohl’s Corporation in order to determine where the company is strong or weak such as the inventory, margins or debt structure. As the results of the DuPont analysis, Kohl’s has a higher ROE for 2010 and 2011 compare to JC Penney; for this reason, Kohl’s earns on shareholder equity for both years. This analysis also allows to understand a competitive advantage over competitors. For both years 2010 and 2011, the results of DuPont analysis of Kohl’s shows that the Return of Equity improved from 12.6 % to 13.7%. Apparently, it demonstrated that Kohl’s generated profit over these years. Also, net sales percentages show that the gross margin improved from 37.8% in 2010 to 38.2% in 2011. It means that the company retained $0.37 to $0.38 from each dollar of the revenue the company generated to be used to paying off selling, general and administrative expenses. The return on asset varies by industries and Kohl’s improved from 7.5% in 2010 to 8.2 % in 2011. It could mean that for each dollars Kohl’s generated 8 cents in its profits.…

Related Documents