Kohls Corp (KSS)
Cash conversion cycle
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.72 | 88.69 | 71.94 | 72.65 | 65.12 | 101.20 | 83.11 | 76.73 | 63.06 | 76.81 | 58.58 | 59.53 | 60.63 | 81.62 | 60.09 | 74.33 | 75.82 | 105.39 | 86.19 | 89.05 |
| Days of sales outstanding (DSO) | days | 3.56 | — | — | — | 4.31 | — | — | — | 4.46 | — | — | — | 17.99 | 2.51 | — | — | 0.28 | 0.46 | 0.29 | 0.27 |
| Number of days of payables | days | 24.70 | 40.13 | 28.50 | 26.99 | 27.16 | 41.82 | 30.84 | 34.48 | 34.60 | 45.03 | 32.04 | 30.76 | 34.55 | 49.42 | 23.70 | 39.00 | 25.85 | 52.92 | 31.35 | 31.34 |
| Cash conversion cycle | days | 41.58 | 48.56 | 43.45 | 45.66 | 42.27 | 59.38 | 52.27 | 42.25 | 32.91 | 31.78 | 26.53 | 28.77 | 44.07 | 34.71 | 36.39 | 35.34 | 50.24 | 52.93 | 55.13 | 57.99 |
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 fluctuated over the past 20 periods, ranging from a low of 26.53 days to a high of 59.38 days. The cash conversion cycle indicates the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales and back into cash. A shorter cash conversion cycle is generally favorable as it signifies efficient management of working capital.
The lowest cash conversion cycle observed was 26.53 days, indicating that Kohls Corp was efficient in converting its inventory into sales and collecting cash from customers in that particular period. Conversely, the highest cycle of 59.38 days suggests that the company took longer to convert its resources into cash, possibly due to delays in inventory turnover or slower collections from customers.
Overall, Kohls Corp should aim to consistently reduce its cash conversion cycle to improve its liquidity and operational efficiency. This can be achieved by streamlining inventory management, optimizing sales processes, and enhancing collection procedures to shorten the time it takes for cash to cycle through the business.
Peer comparison
Feb 3, 2024