Kohl’s Summary

Company description

Kohl’s incorporation can be traced back to 1964. The company is now operating a department retail store in the United States. The company provides exclusive and national brand apparel, private label, accessories, footwear, and home and beauty products to women, men and children customers. The company has its own private brands that include Jumping Jeans, So, Croft & Barrow, Apt.9, and Somana Goods 4 Life. The company’s Exclusive brands include Jennifer Lopez, Food Network, Rock, and Marc Anthony. By 2015, Kohl’s had about 140,000 employees, with a President / CEO and seven directors. The company purchases its merchandise in different local and foreign suppliers and since 2008 no single supplier has ever supplied 5% of net purchases. The current stock price is $40.25 per share.

Stock Exchange Market

As a publicly traded company, Kohl’s corporation is listed in NYSE. In 1998 and 2012, the company was listed in S&P 500 Component and Fortune 500 respectively. It uses ‘KSS’ as its sticker on stock exchange market.

Current Ratio

Financial analysts use current ratio to gauge company’s ability to settle down its short-time financial debt through current asset disposal. Current ratio is a financial measure of company’s liquidity. As of January 2017, 2016/2017 reporting period, Kohl’s Corporation had a current ratio of 1.76. The current ratio looks appealing as it means that for every one dollar of short-term financial obligation, the company has $1.76 current assets. Thus, the company has a satisfying liquidity level as it has capacity to pay its creditors and short-term obligors. According to Jamerson (2016: n.p), Kohl’s a high current ratio can attributed to the inventory management. Since inventory is part of current assets, the high current ratio can be attributed to the Kohl’s inventory management initiatives. The company’s current ratio was high due to high-level of inventory that was yet to be sold.

Work Cited

Jamerson, Joshua. “Kohl’s Beats Expectations, Helps Lift Retail Stocks”. Wall Street Journal, 2016. Retrieved from: https://www.wsj.com/articles/kohls-beats-expectations-but-cuts-earnings-outlook-1470916352.

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