Kohl's Corporation (KSS)

Short-term

Turnover ratios

Based on the provided data for Kohl's Corporation, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period.
- Kohl's inventory turnover has been fluctuating over the years, starting at 5.56 in January 2022 and decreasing to 2.98 by October 2024.
- A decreasing trend in inventory turnover may indicate potential issues with sales growth or excess inventory levels.

2. Receivables Turnover:
- The receivables turnover ratio shows how efficiently a company collects outstanding receivables from its customers.
- Kohl's data shows that receivables turnover was initially not available (marked as "—"), but it significantly increased to 118.86 by February 2024.
- A higher receivables turnover suggests effective management of accounts receivable and prompt collection from customers.

3. Payables Turnover:
- The payables turnover ratio reflects how quickly a company pays its suppliers.
- Kohl's payables turnover varied over the years, with notable figures like 10.80 in July 2022 and a peak of 14.07 by February 2024.
- A high payables turnover indicates efficient management of payables and possibly favorable credit terms with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how effectively a company utilizes its working capital to generate revenue.
- Kohl's working capital turnover shows some fluctuations but generally increased over time, indicating improving efficiency in utilizing working capital.
- A higher working capital turnover ratio suggests effective management of working capital resources to drive sales and growth.

In summary, Kohl's Corporation has shown varying trends in its activity ratios over the years. Further analysis of these ratios in conjunction with other financial metrics would provide a comprehensive understanding of the company's operational efficiency and financial performance.

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Average number of days

Based on the provided data, we can analyze Kohl's Corporation's activity ratios as follows:

1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes for Kohl's to sell its inventory. The trend shows an increasing pattern over time, starting at 65.70 days on January 31, 2022, and reaching 90.12 days on January 31, 2025. Higher inventory days may suggest slower inventory turnover or potential issues with managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO): Unfortunately, the data for DSO is unavailable for most periods, making it challenging to assess Kohl's effectiveness in collecting accounts receivable in a timely manner. However, on February 3, 2024, the DSO was recorded at 3.07 days, indicating a very efficient collection process during that period.

3. Number of Days of Payables: This ratio represents the average number of days Kohl's takes to pay its creditors. The data shows fluctuations in this metric, with values ranging from 28.46 days to 58.74 days. A higher number of days of payables may indicate that Kohl's is taking longer to settle its payables, potentially signaling liquidity concerns or strained vendor relationships.

In summary, while Kohl's Corporation's inventory management seems to be deteriorating based on rising days of inventory on hand, its ability to collect receivables and manage payables is less clear due to limited available data. Further analysis and comparison with industry benchmarks may provide a more comprehensive understanding of Kohl's efficiency in managing its working capital.

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Long-term

Long-term activity ratios provide insights into a company's efficiency in managing its assets over an extended period. Two essential ratios for assessing long-term activity are the fixed asset turnover ratio and the total asset turnover ratio.

1. Fixed Asset Turnover Ratio:
- Kohl's Corporation's fixed asset turnover ratio fluctuated over the observed period. It ranged from a low of 1.41 in July 31, 2023, to a high of 2.57 on February 3, 2024.
- A higher fixed asset turnover ratio indicates that the company is generating more sales from its fixed assets, reflecting operational efficiency.
- The variability in the fixed asset turnover ratio can suggest changes in the company's utilization of its fixed assets to generate revenue.

2. Total Asset Turnover Ratio:
- Kohl's total asset turnover ratio also exhibited fluctuations during the period under review. It varied from a low of 0.99 on October 28, 2023, to a high of 1.42 on February 3, 2024.
- A higher total asset turnover ratio indicates that the company is effectively using its total assets to generate sales, reflecting strong operational performance.
- The fluctuations in the total asset turnover ratio may signify changes in how efficiently the company is utilizing all its assets to generate revenue.

In conclusion, analyzing Kohl's Corporation's long-term activity ratios, particularly the fixed asset turnover and total asset turnover ratios, provides valuable insights into the company's asset utilization efficiency over time. This analysis can help stakeholders assess the company's operational performance and strategic asset management decisions.