The review of Net Profit Margin witnessed a decreasing trend. The Net Profit Margin declined from 3.46% in 2019 to 1.81% in 2023.
The average EBIT Margin for the period under analysis was 3.39%, with 2020 and 2021 performing the worst and best, respectively.
In the current year, Kohl’s was able to cover its interest liabilities 2.08 times – compared to 2019 when it was 5.35 times.
The Capital turnover stood at 1.69 times in 2023 from 1.88 in 2019, implying a low performance on Capital of the business in relation to revenue.
Profitability
The revenue of Kohl’s has decreased year on year. The revenue decreased by 20.12% between 2019 and 2020 and a further 21.80% increase was recorded between 2020 and 2021. There also occurred a decrease of 3.44% between 2022 and 2023 (the current period).
Kohl’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks poor, as current ratio/acid test decreased from 1.53:1/1.20:1 to 1.20:1/1.31:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Kohl’s is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 18.9% in the current year.
