Kohls Corp (KSS)
Return on equity (ROE)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 317,000 | -19,000 | 938,000 | -163,000 | 691,000 |
| Total stockholders’ equity | US$ in thousands | 3,893,000 | 3,763,000 | 4,661,000 | 5,196,000 | 5,450,000 |
| ROE | 8.14% | -0.50% | 20.12% | -3.14% | 12.68% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $317,000K ÷ $3,893,000K
= 8.14%
Return on equity (ROE) is a key financial ratio that measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested. Looking at the ROE trend for Kohls Corp over the past five years, there are notable fluctuations:
1. In the latest fiscal year ending on February 3, 2024, Kohls Corp's ROE stood at 8.14%. This indicates that the company generated a return of 8.14% on every dollar of equity shareholders have invested. While positive, this ROE is relatively moderate compared to historical figures.
2. In the previous fiscal year (ending January 28, 2023), Kohls Corp had a negative ROE of -0.50%, indicating a period where the company incurred losses or had lower profits relative to shareholder equity. This negative figure could be a cause for concern, as it suggests inefficiency or financial distress.
3. The fiscal year ending January 29, 2022, showed a strong ROE of 20.12% for Kohls Corp, signaling robust profitability and efficiency in utilizing shareholder funds. This year stands out as a period of strong performance and value creation for investors.
4. On the other hand, the fiscal year ending January 30, 2021, recorded a negative ROE of -3.14%, indicating a year of poor profitability and potential risks in generating returns for shareholders.
5. The fiscal year ending February 1, 2020, saw Kohls Corp achieve an ROE of 12.68%, reflecting a solid performance in generating returns on equity investment, though slightly below the peak seen in 2022.
In conclusion, Kohls Corp's ROE has been volatile over the past five years, ranging from negative figures to healthy double-digit percentages. Investors and analysts may view the recent ROE of 8.14% as average, while the strong performance in 2022 with an ROE of 20.12% showcases the company's ability to create value for shareholders. The negative ROE figures highlight periods of potential financial challenges that the company may have faced. Investors should consider these fluctuations in ROE when assessing Kohls Corp's overall financial performance and profitability.
Peer comparison
Feb 3, 2024