Kohls Corp (KSS)

Short-term

Turnover ratios

Activity ratios are important indicators of a company's operational efficiency and ability to manage its resources effectively. Here is a detailed analysis of Kohl's Corp activity ratios based on the data provided:

1. Inventory turnover:
- Kohl's Corp has shown a consistent performance in managing its inventory over the past five years, with the ratio ranging between 5.33 and 6.30.
- A higher inventory turnover ratio indicates that Kohl's is efficiently selling its inventory and restocking at an appropriate pace.

2. Receivables turnover:
- The receivables turnover ratio for Kohl's has fluctuated significantly over the years, from 20.02 to 1,318.40.
- The sharp fluctuations in this ratio could suggest changes in Kohl's credit policies or collection practices that impacted the speed of receiving payments from customers.

3. Payables turnover:
- Kohl's has maintained a relatively stable payables turnover ratio, ranging from 10.55 to 15.62.
- A higher payables turnover ratio indicates that Kohl's is efficiently managing its payments to suppliers, possibly negotiating favorable credit terms.

4. Working capital turnover:
- The working capital turnover ratio for Kohl's has varied over the years, with the highest value of 28.65 in the previous year.
- A higher working capital turnover ratio indicates that Kohl's is effectively utilizing its working capital to generate sales revenues.

Overall, Kohl's Corp's activity ratios reflect a mixed performance in managing its inventory, receivables, payables, and working capital. The company's ability to maintain stable ratios in some areas while experiencing fluctuations in others may indicate its continuous efforts to optimize operational efficiency and financial performance.

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Average number of days

Kohls Corp's activity ratios have seen fluctuations over the past five years. The Days of Inventory on Hand (DOH) measure indicates that the company held inventory for an average of around 63 days in 2024, which is slightly lower compared to previous years. This suggests that inventory turnover has improved slightly, signifying better management of inventory levels.

The Days of Sales Outstanding (DSO) measure shows that Kohls collected payments from customers within approximately 3.56 days in 2024, reflecting a favorable trend towards quicker collection of accounts receivable compared to the previous year. This indicates efficient credit management and timely collection practices.

On the other hand, the Number of Days of Payables measure reveals that Kohls took an average of around 24.70 days to pay its suppliers in 2024, which is lower than in the previous year. This could suggest that the company is managing its payables more efficiently and potentially taking advantage of trade credit terms.

Overall, the analysis of these activity ratios for Kohls Corp indicates that the company has shown improvements in managing its inventory, collecting receivables faster, and handling payables more efficiently in the most recent year. These trends reflect positively on the company's operational efficiency and working capital management.

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Long-term

The fixed asset turnover ratio for Kohls Corp has shown a declining trend over the past five years, decreasing from 2.69 in 2020 to 2.22 in 2024. This indicates that the company is generating less revenue from its fixed assets each year.

On the other hand, the total asset turnover ratio has also been decreasing, albeit less significantly, from 1.36 in 2020 to 1.22 in 2024. This suggests that Kohls Corp is becoming less efficient in generating sales revenue from its total assets over time.

Overall, both the fixed asset turnover and total asset turnover ratios for Kohls Corp have been on a downward trajectory, signaling a decline in the company's efficiency in utilizing its assets to generate sales revenue. Further analysis would be needed to understand the underlying factors contributing to this trend and to formulate appropriate strategies for improvement.