Kohls Corp (KSS)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,009,000 | 14,345,000 | 15,054,000 | 15,337,000 | 14,555,000 |
| Total stockholders’ equity | US$ in thousands | 3,893,000 | 3,763,000 | 4,661,000 | 5,196,000 | 5,450,000 |
| Financial leverage ratio | 3.60 | 3.81 | 3.23 | 2.95 | 2.67 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,009,000K ÷ $3,893,000K
= 3.60
The financial leverage ratio of Kohls Corp has exhibited fluctuations over the past five years, ranging from 2.67 in February 2020 to 3.81 in January 2023. The ratio decreased to 2.95 in January 2021 and then increased to 3.23 in January 2022. However, in the most recent period of February 2024, the financial leverage ratio further decreased to 3.60.
This trend indicates that Kohls Corp has been using more debt to finance its operations relative to its equity in recent years. A higher financial leverage ratio suggests higher financial risk due to increased debt obligations, which can amplify returns in favorable conditions but also pose challenges during economic downturns or if the company faces financial difficulties.
Overall, the fluctuation in Kohls Corp's financial leverage ratio suggests varying levels of debt utilization and capital structure decisions over the analyzed period. Investors and stakeholders may closely monitor this ratio to assess the company's risk profile and financial stability.
Peer comparison
Feb 3, 2024