Kohls Corp (KSS)

Short-term

Turnover ratios

Kohls Corp's activity ratios provide insight into its efficiency in managing various aspects of its operations.

1. Inventory Turnover:
The inventory turnover ratio measures how many times Kohls Corp sells and replaces its inventory during a certain period. Over the past few quarters, Kohls has shown a relatively stable inventory turnover, ranging between 3.61 and 6.23 times. A higher turnover ratio indicates efficient inventory management, suggesting that Kohls Corp is effectively managing its inventory levels and selling products in a timely manner.

2. Receivables Turnover:
The receivables turnover ratio reflects how efficiently Kohls is collecting payments from its customers. The data points provided show significant variability in this ratio, ranging from 20.28 to 1,339.13 times. A higher turnover ratio implies that Kohls is collecting payments quickly, which is favorable for its cash flow. However, the fluctuation in this ratio could suggest inconsistency in Kohls Corp's credit policies or changes in customer payment behavior.

3. Payables Turnover:
The payables turnover ratio indicates the speed at which Kohls is paying its suppliers. The company's payables turnover has varied between 7.39 and 15.40 times in recent quarters. A higher turnover ratio suggests that Kohls is efficiently managing its accounts payable, potentially taking advantage of favorable credit terms. However, a very high turnover ratio could also indicate that the company is paying its suppliers too quickly, which may impact its cash flow.

4. Working Capital Turnover:
The working capital turnover ratio evaluates how efficiently Kohls is using its working capital to generate sales. The data reveals fluctuations in this ratio, ranging from 5.58 to 34.58 times. A higher turnover ratio indicates that Kohls is effectively utilizing its working capital to generate revenues. However, a declining trend in this ratio could signal inefficiencies in utilizing working capital resources, potentially impacting Kohls Corp's overall financial performance.

In summary, while Kohls Corp demonstrates relatively stable inventory turnover and payables turnover ratios, the variability in its receivables turnover and working capital turnover ratios may warrant further investigation into the company's credit and working capital management practices.

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Average number of days

Based on the data provided for Kohls Corp's activity ratios, we can analyze the efficiency of the company's inventory management, accounts receivable collection, and accounts payable turnover.

1. Days of Inventory on Hand (DOH):
- Kohls Corp's DOH has fluctuated over the periods analyzed, ranging from 58.58 days to 105.39 days.
- A lower DOH indicates more efficient inventory management as the company is able to sell its inventory faster.
- The company has shown improvement in managing inventory as seen in recent periods with lower DOH figures, suggesting enhanced efficiency in inventory turnover.

2. Days of Sales Outstanding (DSO):
- DSO provides insight into how long it takes for Kohls Corp to collect payment from its customers.
- The data shows variability in DSO, with values ranging from 0.27 days to 17.99 days.
- Lower DSO is favorable as it signifies a quicker collection of accounts receivable, indicating effective credit and collection policies.

3. Number of Days of Payables:
- This ratio reflects how long it takes Kohls Corp to pay its suppliers.
- Kohls Corp's number of days of payables has ranged from 23.70 days to 52.92 days, showing variability in the payment terms.
- A higher number of days of payables indicates that the company is able to hold onto cash for a longer period, which can positively impact cash flow and liquidity.

In conclusion, analyzing Kohls Corp's activity ratios reveals improvements in inventory management efficiency and accounts receivable collection. The company has shown variability in the days of payables, indicating flexibility in managing supplier payments. Overall, the trends in these activity ratios suggest enhancements in operational efficiency and working capital management for Kohls Corp.

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Long-term

Kohls Corp's long-term activity ratios, namely the fixed asset turnover and total asset turnover, provide valuable insights into the efficiency of the company's asset management over the period analyzed.

The fixed asset turnover ratio indicates how effectively Kohls Corp is utilizing its fixed assets to generate sales. From the data, we observe that the fixed asset turnover ratio has fluctuated over time, ranging from 2.07 to 2.79. A higher fixed asset turnover ratio suggests that Kohls Corp is efficiently using its fixed assets to generate revenue. The company's fixed asset turnover ratio has shown some variability, with a generally increasing trend in recent periods, indicating improved efficiency in utilizing fixed assets.

On the other hand, the total asset turnover ratio measures how efficiently Kohls Corp is using all its assets to generate sales. The total asset turnover ratio has also fluctuated but generally remained within a narrower range compared to the fixed asset turnover ratio, with values ranging from 0.94 to 1.37. Similar to the fixed asset turnover ratio, a higher total asset turnover ratio signifies better asset utilization efficiency. Kohls Corp's total asset turnover ratio has shown mixed results, with some periods of improvement and some with relatively lower efficiency in asset utilization.

Overall, the analysis of Kohls Corp's long-term activity ratios suggests that the company has made efforts to improve the efficiency of its asset management over the period analyzed, particularly in terms of utilizing fixed assets more effectively. However, there are still some fluctuations and room for further enhancement in optimizing total asset utilization for revenue generation.