Kohls Corp (KSS)
Cash conversion cycle
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.72 | 65.12 | 63.06 | 57.92 | 68.54 |
| Days of sales outstanding (DSO) | days | 3.56 | 4.31 | 3.66 | 18.23 | 0.28 |
| Number of days of payables | days | 24.70 | 27.16 | 34.60 | 33.00 | 23.37 |
| Cash conversion cycle | days | 41.58 | 42.27 | 32.11 | 43.14 | 45.45 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.72 + 3.56 – 24.70
= 41.58
The cash conversion cycle of Kohls Corp has fluctuated over the past five years. In the latest fiscal year, ending on Feb 3, 2024, Kohls Corp's cash conversion cycle was 41.58 days, showing a slight improvement compared to the previous year's figure of 42.27 days. This indicates that Kohls Corp was able to convert its investments in inventory and accounts receivable into cash more efficiently during the most recent fiscal period.
Looking back further, in Jan 29, 2022, Kohls Corp achieved a notably lower cash conversion cycle of 32.11 days, reflecting a strong performance in managing its working capital. However, in the fiscal years ending on Jan 30, 2021 and Feb 1, 2020, the cash conversion cycle increased to 43.14 days and 45.45 days, respectively, suggesting potential inefficiencies in the company's cash conversion process during those periods.
Overall, Kohls Corp's cash conversion cycle has shown variability over the past five years, with fluctuations indicating changes in the efficiency of its working capital management. The company should continue to monitor and optimize its cash conversion cycle to ensure effective utilization of its resources and maintain strong financial performance.
Peer comparison
Feb 3, 2024