| | KOHLS 2013 Fiscal Year | | | | KOHLS 2012 Fiscal Year |
| Ratio
(Refer to pgs 775 - 777 for ratio formula) | Calculation of Ratio
Show work | | Ratio | | Calculation of Ratio
Show work | | Ratio | Points |
| Requirement 2 |
| Evaluate PROFITABILITY. Using information you have learned in the text and elsewhere, evaluate Kohl's profitability for 2013 compared with 2012. In your analysis, you should compute the following ratios and then comment on what those ratios indicate.
NOTE: Use amounts in the audited financial statements only to calculate these ratios (Item 8. of annual report). |
| a. Rate of return on sales #13 | | | 4.7% | | | | 5.1% |
| Ratio: | $ 889 | | | | $ 986 |
| Net income / Net sales | $ 19,031 | | | | $ 19,279 |
| | | | | | | | | <--- This item was completed |
| | Did the ratio increase or decrease? Is that positive or negative? Why? | | | | | | | for you as an example |
| | The ratio decreased. This is negative because each dollar of sales produced less income.
|
| b. Asset turnover #14 | | | - 0 | | | | - 0 | 4 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| c. Return of return on assets (#15 non-DuPont model) | | | 0.0% | | | | 0.0% | 4 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| d. Return of return on equity (#17 non-DuPont model) | | | 0.0% | | | | 0.0% | 4 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| e. Gross margin percentage #10 | | | 0.0% | | | | 0.0% | 4 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| f. Earnings per share #18 (do NOT use one shown on the income statement, |
| calculate yourself using simple average of outstanding shares) | | | $ - 0 | | | | $ - 0 | 4 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| g. Generally, are these indicators positive or negative? What trend(s) do you detect from this analysis? | | | | | | | | 3 |
| Requirement 3 |
| Evaluate the company's ABILITY TO SELL INVENTORY AND PAY DEBTS during 2013 and 2012. In your analysis, you should compute the following ratios, and then comment on what those ratios indicate.
NOTE: Use amounts in the audited financial statements only to calculate these ratios (Item 8. of annual report). |
| a. Inventory turnover & days' inventory outstanding #3 | | Turnover | - 0 | | | Turnover | - 0 | 6 |
| | | Days | - 0 | | | Days | - 0 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| b. Accounts payable turnover & days' payable outstanding #6 | | Turnover | - 0 | | | Turnover | - 0 | 6 |
| | | Days | - 0 | | | Days | - 0 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| c. Current ratio #1 | | | - 0 | | | | - 0 | 4 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| d. Quick (acid-test) ratio #2 | | | - 0 | | | | - 0 | 4 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| e. Debt ratio #8 | | | - 0 | | | | - 0 | 4 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| f. Times interest earned #9 | | | - 0 | | | | - 0 | 4 |
| Ratio: |
| | Did the ratio increase or decrease? Is that positive or negative? Why? |
| g. Generally, are these indicators positive or negative? What trend(s) do you detect from this analysis? | | | | | | | | 3 |
| Requirement 4 |
| Evaluate Kohl's CASH FLOW. |
| a. For 2013, was cash provided by, or used in, operations? | | | | | | | | 1 |
| b. For 2013, is Kohl's net cash flow from operations greater than or less than Income from Operations? What is the primary cause of the difference? | | | | | | | | 2 |
| c. For 2013, what is the primary source of cash from investing activities? Is this the same as in 2012 and 2011? If not, state the primary source(s) of cash from investing activities in 2012 and 2011. | | | | | | | | 4 |
| d. For 2013, what is the primary source of cash from financing activities? Is this the same as in 2012 and 2011? If not, state the primary source(s) of cash from financing activities in 2012 and 2011. | | | | | | | | 4 |
| Requirement 5 |
| OTHER FINANCIAL ANALYSIS. |
| a. Has Kohl’s been able to generate increased revenues from 2012 to 2013 to outpace inflation? Provide explanation. Reference the source of your inflation data. | | | | | | | | 2 |
| Hint: Figure out percentage increase in revenue from 2012 to 2013. Compare that to the rate of inflation (research this in internet). Then discuss if the increase in revenue was really related to better operations or was it mostly just inflationary effect. |
| b (1). What was the closing market price of Kohl's Corporation stock on February 3, 2014, the next trading day after the balance-sheet date of February 1, 2014? | | | $ - 0 | | | | | 2 |
| b (2). What is the book value per share on February 1, 2014? (ratio #21) | | | $ - 0 | | | | | 2 |
| Ratio: |
| b (3). What is the difference between the Kohl’s market price from e(1). above and the book value from e(2). above? What factors could be attributable to this difference? | | | | | | | | 2 |
| c (1). How much was the dividend declared per share (from Requirement 1, g. ) | | | $ - 0 | | | | | 1 |
| c (2). How much as the earnings per share (calculated above in Requirement 2, f. ) | | | $ - 0 | | | | | 1 |
| c (3). What percent of the earnings per share was distributed as a dividend ? Is Kohl's distributing significant earnings to their shareholders? | | | | | | | | 2 |
| Requirement 6 |
| Overall, determine the financial health of Kohl’s based on the information gathered from requirements 2 – 5 above.
Provide specific reasons as to why. | | | | | | | | 6 |
| | | | | | | | | 83 |
zeig013
acg2021_project.xlsx
