1) Kohl's began in 1962 as a small grocery store in Wisconsin and grew to become a large supermarket chain before transitioning to retail. It has undergone several ownership changes and expansions over the decades.
2) A financial analysis of Kohl's found its current ratio of 1.84 and inventory turnover of 3.63 to be healthy, but total debt ratio of 0.54 and profit margin of 6.21% to be on the lower side.
3) A peer analysis showed Kohl's has a higher profit margin than industry average, but uses more debt financing for growth than competitors. Kohl's prospects for continued growth over the next 10 years are positive.
BoyarMiller Breakfast Forum: The Houston Commercial Real Estate Markets – Wha...BoyarMiller
As part of its ongoing Breakfast Forum series, BoyarMiller gathered industry experts for a panel discussion on the look ahead for Houston’s Commercial Real Estate for 2015.
Speakers included: Will Holder with Trendmaker Homes; Allen H. Crosswell, with NewQuest Crosswell; Jonathan Brinsden with Midway; and Welcome Wilson, Jr. with Welcome Group.
In this edition of Valuation Insights we discuss retention incentives that are expected to become more mainstream under the new Trump Administration. The article discusses recent high profile cases, such as United Technologies recently announced deal to retain Carrier Corporation's furnace manufacturing facility in Indiana. The most common retention incentives are discussed in the article as well as best practices to improve your prospects for securing them.
Other Topics Covered Include:
• Goodwill impairment trends as highlighted in the Duff & Phelps 2016 U.S. and European Goodwill Impairment Studies • Duff & Phelps' Fifth Annual Transaction Trail Report on M&A and Capital Markets Activity in Southeast Asia • Delaware Chancery Court Case which utilized the Duff & Phelps Valuation Handbook Series as support for its conclusion that the respondent's expert's analysis was more reliable.
STOP THE PRESS!! THIS VIDEO WAS MADE IN 2013........
SPENT A LOT OF TIME AND MONEY NOW IN 2016 I'M A CO-OWNER IN "VIRAL MARKETING ASSISTANT'"
HTTP://VMA.OPPORTUNITYWITHDBLEE.COM
contact me
DONNA@THEDONNALEE.COM
Special audio version description available upon request!
Allison Huish *registered dietician * essential oil educator *Cancer survivor
donna@thedonnalee.com
Each oil has multiple uses and many have similar uses. What may be common in China to use melaluca may be the same inaustralia for lemon. This is all Indigenous to the region!
My experience is that so much knowledge is required to use essential oils that mediocrity has overcome uses of nature, so who will step up? Who will overcome their health and BE WELL?
BoyarMiller Breakfast Forum: The Houston Commercial Real Estate Markets – Wha...BoyarMiller
As part of its ongoing Breakfast Forum series, BoyarMiller gathered industry experts for a panel discussion on the look ahead for Houston’s Commercial Real Estate for 2015.
Speakers included: Will Holder with Trendmaker Homes; Allen H. Crosswell, with NewQuest Crosswell; Jonathan Brinsden with Midway; and Welcome Wilson, Jr. with Welcome Group.
In this edition of Valuation Insights we discuss retention incentives that are expected to become more mainstream under the new Trump Administration. The article discusses recent high profile cases, such as United Technologies recently announced deal to retain Carrier Corporation's furnace manufacturing facility in Indiana. The most common retention incentives are discussed in the article as well as best practices to improve your prospects for securing them.
Other Topics Covered Include:
• Goodwill impairment trends as highlighted in the Duff & Phelps 2016 U.S. and European Goodwill Impairment Studies • Duff & Phelps' Fifth Annual Transaction Trail Report on M&A and Capital Markets Activity in Southeast Asia • Delaware Chancery Court Case which utilized the Duff & Phelps Valuation Handbook Series as support for its conclusion that the respondent's expert's analysis was more reliable.
STOP THE PRESS!! THIS VIDEO WAS MADE IN 2013........
SPENT A LOT OF TIME AND MONEY NOW IN 2016 I'M A CO-OWNER IN "VIRAL MARKETING ASSISTANT'"
HTTP://VMA.OPPORTUNITYWITHDBLEE.COM
contact me
DONNA@THEDONNALEE.COM
Special audio version description available upon request!
Allison Huish *registered dietician * essential oil educator *Cancer survivor
donna@thedonnalee.com
Each oil has multiple uses and many have similar uses. What may be common in China to use melaluca may be the same inaustralia for lemon. This is all Indigenous to the region!
My experience is that so much knowledge is required to use essential oils that mediocrity has overcome uses of nature, so who will step up? Who will overcome their health and BE WELL?
Running head FINANCIAL ANALYSIS OF LOWE’S COMPANY .docxwlynn1
Running head: FINANCIAL ANALYSIS OF LOWE’S COMPANY 1
FINANCIAL ANALYSIS OF LOWE’S COMPANY 11
Financial Analysis of Lowe’s Company
Introduction
Lowes Company is a national store that was founded in the year 1948. The company was first opened in North Carolina and it was among the first retailer companies in America back then. The company mainly dealt with home equipment and appliances. Moreover, the company is said to have been generating huge revenues back then when it began. The company continued to thrive in its operations as it opened up approximately 2390 stores across the world. The company also promoted social responsibility in the society as it has so far employed around 310, 000 individuals in its stores worldwide. However, in the past years, the performance of the company began deteriorating and a financial analysis has to be carried out in order to know the problem.
Body
Common size income statement
year
2018
2017
2016
2015
Net sales
100
100
100
100
Cost of sales
65.89
65.45
65.18
65.21
Gross margin
34.11
34.55
34.82
34.79
Selling, general exp
22.41
23.27
23.88
23.61
Depreciation and amortization
2.11
2.29
2.53
2.66
Operating income
9.60
8.99
8.41
8.52
Interest expense
0.93
1.00
0.93
0.92
Amortization
0.02
0.02
0.01
0.01
Interest income
0.02
0.02
0.01
0.01
Interest net
0.92
0.99
0.93
0.92
Loss on extinguishment of debt
0.68
-
-
-
Pre-tax earnings
8.00
8.00
7.48
7.61
Income tax provisions
2.98
3.24
3.17
2.81
Net earnings
5.02
4.76
4.31
4.80
A common size financial statement is a document that is used in doing comparison of financial information. The values of the common size income statement are normally converted as a percentage of the returns. From the common size income statement it is clear that the cost of sales increases over the years. The cost of sales in 2015 was 65.21 and in 2018 the cost of sales was 65.89. However, the gross margin is decreasing over the years. A gross margin is the amount that is the revenue that is collected in each commodity that is sold. The decrease in the gross margin is an indicator that the company is not performing well financially. Companies should have a high gross margin so that they can be able to meet other financial obligations.
Moreover, from the common size financial statement of analysis, it can be seen that the pretax earnings decreased slightly in 2015 and 2016 and then remained stable for the next two years[footnoteRef:1]. In addition, the interest net, interest income and the amortization are a clear indication that the company is carrying out proper investments using the shareholders property and wealth. The extra investments will enable the company to have a high debt to equity ratio and eventually the return on equity will increase greatly. Firms that have a high return on equity also have a greater ability to meet the day to day expenses. Therefore, firms are.
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Running Head: FINANCIAL ANALYSIS
1
FINANCIAL ANALYSIS
7
Financial Analysis
Students Name
Institutional Affiliation
Executive summaryThis report created from the financial statements of The Coca-Cola Company (KO) provides an analysis and evaluation of the actual and the prospective liquidity, profitability and the financial stability of the company. The methods that have been used in the analysis include trend analysis, the vertical analysis and the horizontal analysis. Also we have used certain analysis such as Quick ratio, debt ratio, and the current ratios. More calculations that have been used includes the returns on the owners equity, the earning per share, net operating working capital, total operating capital, net operating capital, net operating profit after taxes, operating cash flow and free cash flow. A result from the data reveals that, all the company ratios are above the industries averages. Comparative performance is good in the area of the liquidity, credit control and inventory management.
The report finds that the tidings for the company are positive in the near future. The major areas of weakness highlighted require further investigation and immediate action by management. The recommendations that were provided include;
· Improving the average accounts receivable collection period,
· Raising/ increasing the inventory turnover and reduction of prepayments in order to have enough operating cash for the subsequent periods.
The investigation in this report also had its shortcomings that arose and are highlighted as;
The forecasted figures used are estimates that sometimes maybe arbitrate; we also cannot fully provide data on the position of other companies with the data limitation we have experienced. The monthly details would have given us more information from which we could base a proper in year trend analysis, rather than the blanket whole year analysis provided. Though we had the above mentioned strain in preparation of this report, we still great belief that the analysis provided is best suited to show the standing of the Coca-Cola Company (KO).
In the financial report below, the strengths, weakness, opportunity and threats have been highlighted as we analyze the various financial sub segments.
Identify your company, its industry, and analyze the important segments (percentage of sales or subsidiaries) of your company compared to its industry and its overall business
The Coca-Cola Company (KO) is a multinational American Company that has its headquarters at Atlanta Georgia. The company has got its branches in more than 200 countries in the world and majority of its sales is in America, amounting to 40% of the total sales. The company operates in the non alcoholic beverage industry made up of the following companies as the main rivals, Dr Pepper Snapple Group, Inc, Nestle and Pepsi Inc. the company is the best performer in market capitalization compared to competitors with a capitalization of 169.49billion, higher .
This PPT covers all the important ratios which are necessary in financial analysis of a business enterprise.
Whether you are starting your career i commerce and business or you a working profession these ratios will always help you to properly analsyse a company and draw relevant conclusions The main ratios covered are:
Liquidity Ratios
Leverage Ratios
Efficiency Ratios
Profitability Ratios
Market Value Ratios
Evaluated the strategy of Home Depot (NYSE: HD). Further used the strategic analysis, along with financial statement analysis and any other available information, to provide and support a long term growth rate estimate for the company.
Running Head FINANCIAL RESEARCH REPORT1FINANCIAL RESEARCH RE.docxwlynn1
Running Head: FINANCIAL RESEARCH REPORT 1
FINANCIAL RESEARCH REPORT 7
Financial Research Report
Chet L. Walker
Strayer University
Dr. Inez Black
FIN 534 – Financial Management
24 May 2020
Financial Research Report
As the child of a recent retiree on a fixed income, I understand how much my mother worked for money. With that in mind, she would not be willing to work so hard for so long to frivolously squander it away in her twilight years casing risky investments. At the same time, due to her health needs, I know that I would want to make sure her money worked for her on a level to ensure she can get the care she needs without wondering how she will pay for medication or deductibles. With that in mind, I would want to find the optimum stock for her to invest in.
Since she does not have the disposable income or time to recover from a huge loss, I would suggest she invest in intermediate-cap or large-cap company, and attempt to avert little-caps names altogether. The reason startups give such high returns is because they are indeed risky investments. She has a great of a chance of bottoming out as she would striking it big. Even though some small firms would suit the older individual’s investing framework, most of her picks should follow this advice (Bunker, Cagle & Harris, 2019). Moreover, if you are participating in "best of breed" firms and unique brands which conform to the rules of Graham and Buffet investing thoughts should not be a challenge.
The next criteria I would use to help her pick a stock would be to find a stock that is a robust past performer. It may not give double-digit returns every year, and it can even be subject to an occasional lousy quarter. The overall thought process is the long-term plan has to be persuasive. I would want her to invest in a business that has made shareholders rich while avoiding a stock that has ruined stockholder value in the long run. She should invest in stocks that meet the metrics as mentioned earlier, and that has done well over a considerable duration.
Once we weed out the type of stocks to focus on, it’s now time to zero in on a particular company. I would advise her to invest in a stock that offers a simple, reasonably direct company business model. These companies usually provide a good or service that is easily understood and extremely recognizable. Since she is not an industry expert, she should avoid companies that other investors might find complicated. That company should also be considered "best in the breed."
These companies are among the best in their industry. The general rule of thumb is it is best to stick with excellent, permeating, and highly-admired brands. Additionally, if you look at the best stocks in past, have a great brand as an everyday thing. If one is looking for rapidly-emerging brands, it should not be difficult to trace one that has an antiquity of better performance. Most firms that suit this outline have a tremendous continuing traje.
You will be required to write a critique of two case studies. Each.docxmattjtoni51554
You will be required to write a critique of two case studies. Each case study critique will be between 3–5 pages in length, should discuss the major facts of the case, and should tell whether or not you believe the right decision(s) was/were made and why. The format of each case study critique should be as follows:
Identify the important facts in the case study
What decision(s) were made in the case study
Do you believe the decisions were appropriate
Discuss any alternative solution(s) to the problem and support those solutions with additional research (with similar cases)
Conclusion
Bibliography
Make sure each section is labeled appropriately (Facts, Decision,
Solution
, Conclusion)
Citation style: APSA, APA, Chicago
All papers should use the following format: Times New Roman, 12 point font, 1” margins from left to right and top to bottom, double spaced, number pages, and include a title page.
Running head: FINANCIAL ANALYSIS OF LOWE’S COMPANY 1
FINANCIAL ANALYSIS OF LOWE’S COMPANY 11
Financial Analysis of Lowe’s Company
Name
Institution
Course
Date
Introduction
Lowes Company is a national store that was founded in the year 1948. The company was first opened in North Carolina and it was among the first retailer companies in America back then. The company mainly dealt with home equipment and appliances. Moreover, the company is said to have been generating huge revenues back then when it began. The company continued to thrive in its operations as it opened up approximately 2390 stores across the world. The company also promoted social responsibility in the society as it has so far employed around 310, 000 individuals in its stores worldwide. However, in the past years, the performance of the company began deteriorating and a financial analysis has to be carried out in order to know the problem.
Body
Common size income statement
year
2018
2017
2016
2015
Net sales
100
100
100
100
Cost of sales
65.89
65.45
65.18
65.21
Gross margin
34.11
34.55
34.82
34.79
Selling, general exp
22.41
23.27
23.88
23.61
Depreciation and amortization
2.11
2.29
2.53
2.66
Operating income
9.60
8.99
8.41
8.52
Interest expense
0.93
1.00
0.93
0.92
Amortization
0.02
0.02
0.01
0.01
Interest income
0.02
0.02
0.01
0.01
Interest net
0.92
0.99
0.93
0.92
Loss on extinguishment of debt
0.68
-
-
-
Pre-tax earnings
8.00
8.00
7.48
7.61
Income tax provisions
2.98
3.24
3.17
2.81
Net earnings
5.02
4.76
4.31
4.80
A common size financial statement is a document that is used in doing comparison of financial information. The values of the common size income statement are normally converted as a percentage of the returns. From the common size income statement it is clear that the cost of sales increases over the years. The cost of sales in 2015 was 65.21 and in 2018 the cost of sales was 65.89. However, the gross margin is decreasing over the years. A gross margin is the .
FEEDBACK FOR REVISINGI want you to imagine you are writing .docxmydrynan
FEEDBACK FOR REVISING:
I want you to imagine you are writing for a C-level person. Don;t think it is me. This is someone who has never read anything else you have written. With that in mind, what would that person need to read in order to better understand the market and the competitors? Also, does that person need more details in the SWOT to better understand the situation they are facing? Tell me more about the competition in your own words. I can read a balance sheet, but tell me who these other competitors are and why they are getting the better of Kohl's.
Read the paper again and work on the flow. Does it flow or does it feel choppy? (again, this is a general comment and may not be specific to your paper).
Is the main problem a drop in sales? Or, is it that Kohl's isn't able to innovate and deliver what customers want? Sales are a symptom of another problem. Focus on the problem. You can add the symptoms, but focus on the problem.
When you are addressing each problem in your solutions section, make sure you address each problem as you listed them in the previous section. For instance, if you say:
Kohl's problems are:
1) lack of innovation
2) poor marketing
3) strong competition
Then, in the solutions section you would write about each problem in that order. Don't make the reader think. Especially in a business setting. Most likely, the reader will only read the Executive Summary. But, I will be reading the entire paper.
I will be really looking at your problem descriptions, your solutions, your implementation plans, and success metrics. These are relatively new section (with the exception of the problem descriptions). Regardless if I agree or disagree with the solutions, I want to hear you make the case for why your proposed solution is THE solution. Does that make sense?
Surname 1
Term Paper Title
Name
BA 301 Final Term Paper
Section Number (e.g., Section 002)
Date
Table of Contents
3Executive Summary
Situation Analysis
4
Problem Analysis & Description
9
Solution
s, Evaluation & Recommendation12
Implementation Plan15
Success Metrics17
1Bibliography
8
Executive Summary
Kohl Corporation is a reputed player in the lifestyle industry. The company has weathered a fair share of storms, with the global economic crisis in 2008 hitting it the hardest. However, the company has maintained strong performance in the aftermath of the crisis, setting good records on growth. In the last three years, however, revenues have grown at a slower pace than expected, mainly due to ineffective marketing strategies.
The paper examines the situation for Kohl, citing the need for solutions towards a very profitable future. First, the Y generation, commonly called the millennials, is tech-savvy, preferring to do shopping online as opposed to stores. That raises the need for Kohl to construct solutions on this level to take advantage of the economic growth, increase consumption and trendy lifestyles of the millennials. In so doing, the compa ...
Equity-Investment Analyst who have been working in the financial markets for over 35 years. A University of Pennsylvania Wharton School of Business Graduate, an Investment and Financial leader on Capital Hill in Washington, DC and 20 years of financial modeling and analysis consulting experience. I am a teacher, a mentor and accomplished businessman eager to share my experience, and helpful advice
1. Matt Alstad
Fire 371
11/18/2012
Kohl’s
The company I am doing my financial report and analysis on is Kohl’s. The reason I
chose to do Kohl’s is because I have worked there for 3 years and I am interested to learn about
how they are doing financially. When looking at the history of Kohl’s we will go back to 1962
when the story of Kohl’s all began and ultimately became a reality. Max Kohl opened the first
Kohl’s Department Store in Brookfield, Wisconsin. It started as a small grocery business and
was later developed into the largest supermarket chain in the Milwaukee area. After this he
decided to go to retail and created Kohl’s Department Stores which he positioned between
higher-end department stores and the discounters, selling everything from candy to engine oil to
sporting equipment. In the early 1980s A company known as BATUS (British American
Tobacco of the United States) acquired control of the company and the Kohl family withdrew
from operations of the company. Within 10 years it expanded from 10 stores to 39 stores in
Wisconsin, Illinois and Indiana. The next takeover of the company happened in 1986 when a
management-led group of investors formed Kohl’s Corporation and bought Kohl’s Department
Stores from BATUS, Inc. The management team spent the next year and a half absorbing the
buyout, and refocused the product lines. They wanted to continue the concept of “a value
oriented retailer selling moderate-priced merchandise.” They had 40 stores with annual sales of
$300 million and over 5,000 associates. From 1988-1992 Kohl’s sales increased from $388
million to $1 billion dollars one of their greatest growths at the time. In 1992 Kohl’s took a big
step towards growth and decided to go public. The offering that was made was 11.1 million
shares allowing them to expand their distribution center and open many more stores at a faster
rate. From 1992 to 1999, Kohl’s tripled the number of stores they had to 259, while revenues
2. quadrupled, from $1.1 billion to $4.56 billion. Currently Kohl’s is operating in a big world and is
not done growing. As you can see throughout the years their growth has been substantial and the
amount of sales and revenue they have is overwhelming. Doing this financial analysis for this
giant public company is going to be fun and will prove to show you records you may not have
seen. As part of the retail industry it is not going away anytime soon and continues growing
every year.
When looking at examining five ratios I decided to look at the 5 ratios (1 from each
category) that I found very important to a firm and that help explain a firm’s financials the best.
The first ratio to examine comes from liquidity and is known as the current ratio. The reason I
chose it is because it is one of the best-known and most widely used ratios. To solve the current
ratio a firm will take its total current assets divided by total current liabilities. Since both assets
and liabilities will be converted to cash after a year the current ratio measures short-term
liquidity. When examining Kohl’s we can see that their current ratio for the most recent year is
1.84. This means that for every $1 Kohl’s will need to pay in the next month, they will have
$1.84 cents to cover it in assets. In general this is a good current ratio and staying above 1 means
a company can cover its liabilities. The next type of ratio we will look at is a long-term solvency
measure. This will show what a firm’s finances should look like in the long run. The ratio we are
examining will be the total debt ratio. The total debt ratio takes into account all debts of all
maturities to all creditors. I chose this ratio because it shows how much debt a firm has vs. how
much equity they have per dollar. For Kohl’s the total debt ratio is .54 in the most recent year.
This means that for every 54 cents they have for debt they have 46 cents in equity. Generally this
is not a very good total debt ratio because you usually want more equity than debt. The next
category we want to look at is asset management/turnover measures. The measure to be
3. discussed here is inventory turnover. Inventory turnover shows how many times in one year a
company will sell of their inventory. The reason this is important is because the more inventory
they can get rid of in a year the more money they can make and the more they can rotate
inventory. Inventory turnover for Kohl’s in 2011 was 3.63 times which means in one year they
sold all of their inventory 3.63 times. This is actually a pretty decent number and the fact that
they always keep some inventory in store helps them. Now we will go into profitability measures
which help show how profitable a firm is in any given year. The ratio we will want to use in this
cause is profit margin. Profit margin will tell us how much profit a firm will generate compared
to its sales. Usually a firm will desire to have a higher profit margin since this gives them more
money. Kohl’s profit margin for 2011 is 6.21% which is on the lower side. The reason it is on the
lower side is because their prices are so low that they do lose some money on items they sell, but
they make it up in volume. The last category to look at is market value measures. These
measures will help determine the market value of a company based on their stock price for that
year. The ratio we will examine will be the price to earnings ratio (PE ratio). The PE ratio
shows how many times shares sell versus earnings or how much investors are willing to pay per
dollar of current earnings. Higher PEs usually means the firm has significant prospect for future
growth. In 2011 Kohl’s had a PE ratio of 8.48 which is a decrease from recent years. All though
they did decrease from 14 to 8.5 this still shows good signs for growth since the company is
staying in the higher PE range.
When doing a peer analysis with Kohl’s some interesting data was found after
researching the financial information and comparing it to the industry. The first ratio to look at
when comparing Kohl’s to industry benchmark data is the profit margin. Kohl’s profit margin for
the most recent quarter was 37.22% while the industries margin was only 28.79%. This shows
4. that all together Kohl’s makes a bigger profit compared to the average for the industry. The next
ratio to examine is the P/E ratio. Kohl’s has a low 12 while the industry is sitting at 20.4. This
just means that the retail industry in general has a much greater chance for growth while Kohl’s
at 12 still has a good growth prospect. The current ratio is proven to be very close between
Kohl’s and the industry with Kohl’s having 1.6 and the industry having 1.5. The fact that both
ratios are over 1 show that Kohl’s and the industry both have enough to cover their liabilities.
Next we take a look at the debt to equity ratio. This ratio shows how much debt you have versus
how much equity you have. It explains whether a firm finances its growth with more debt or
more equity. Having a high debt to equity ratio can mean that you finance your growth with debt,
but if you do it right you can increase your earnings over debt and make a higher profit. Kohl’s
has a debt to equity of .75 while the industry has .4. This shows that Kohl’s finances its growth
with more debt than equity all though this is still a somewhat low number. The industry in
general uses the approach of financing with more equity and does not use as much debt for
financing of operations. The last ratio to look at is inventory turnover. Kohl’s has an inventory
turnover of 2.7 while the industry has a turnover of 5.8. This shows that the industry turns its
inventory over 2 times that of Kohl’s in a given quarter. This means that the industry is much
better at getting rid of inventory.
After reviewing all of the financial data and discovering what Kohl’s Corporation does as
a company we can discuss prospects. Kohl’s has a great prospect for growth in the future and
based on all of the ratio analyses and industry benchmark comparisons you can see that it is a
company that won’t be going away anytime soon. While keeping their profit margins consistent
every year and maintaining a good P/E ratio this proves to show that they will keep growing as a
company. With a strong history behind them and many years of operations this company knows
5. what it is doing and will not be going away anytime soon. Kohl’s is a strong company and works
very hard at maintaining its finances and keeping them at reasonable ranges. All together I think
they will have a great growth in the next 10 years with their customer base increasing every year
and their profit margins getting bigger. This will prove to be a great advantage for Kohl’s in the
future.
6. Bibliography
Ross, Stephen A., Randolph Westerfield, and Bradford D. Jordan. Essentials of Corporate Finance.
Boston, MA: McGraw-Hill/Irwin, 2007. Print.
Kohl's history. (2011, January 23). Retrieved from http://www.kohlscareers.com/aboutkohls/history/
http://finance.yahoo.com/
http://money.msn.com/