Kohls Financial Ratios

Financial Analysis Kohls was founded in 1962 and corporate office is located in Menomonee Falls, Wisconsin, a suburb of Milwaukee. The company has almost 1,200 stores across 49 states and generates annual sales in excess of $19 billion. They introduced on-line shopping in 2001.
In recent years, capital investments have shifted from building new stores to improving the customer’s shopping experience. Kohls have made changes to improve its merchandise presentations, check-out experience and an easier on-line shopping experience.
I. From an investor’s view, review the last annual report for chosen company.
a. Liquidity Kohls’ 2014 fiscal year ended January 31, 2015. They ended with working capital of $2,839,000. This was an increase

Profitability The gross profit for Kohls was $6,925,000 and its net sales were $19,023,000. Kohls ended with a gross profit ratio of 36.4. (Kimmel,2013)
c. Solvency Solvency ratios measure the stability of a company and its ability to repay its debts. In order to determine whether Kohls finances were solvent, the debt to asset ratio was used to divide the liabilities by the assets. The liabilities were $8,427,000 and the assets were $14,418,000. Therefore the solvency rate calculated to 58.44%. Kohls has increased its positon in the industry
d. Industry ranking Kohls is listed as number 23 on the National Retail Foundation list of the top 100 retailers.( nrf.com)
e. Major competitors
The chart below displays store sales, revenue, and net income growth for Kohl's, Target, and Macy's. These are some of the healthier retailers in the industry, and you can see Kohl's holds up well, especially on the bottom line. Kohls no hassle return policy is a big plus for the company. Customers can return merchandise in any condition whether it was bought on-line or in the store. None of their competitors can match that initiative.( phx.corporate-ir.net)

Same-Store Sales Growth Revenue Growth Net Income

Investors’ expectations - Investors want to be linked or associated with organizations that are visible in the local communities and not there just to make money. The media and public are not happy first that a lot of the manufacturing jobs are outsourced to other countries. Another reason is the inhumane treatment of the workers in those countries. Investors don’t want to be associated with an organization than treats their workers in that matter. The more positive media associated with an organization increases customers shopping in the store, therefore increasing revenue. The investor is interested in increasing his investment. The expectations indicate are positive initiatives that would prompt them to invest in Kohls. They don’t want to be associated with organizations involved in