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Kohl's ROIC %

: 2.93% (As of Apr. 2022)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kohl's's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2022 was 2.93%.

As of today (2022-08-13), Kohl's's WACC % is 10.67%. Kohl's's ROIC % is 10.66% (calculated using TTM income statement data). Kohl's earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Kohl's ROIC % Historical Data

The historical data trend for Kohl's's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kohl's Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.99 11.81 8.88 -0.80 12.05

Kohl's Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.02 16.71 11.43 13.19 2.93

Competitive Comparison

For the Department Stores subindustry, Kohl's's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Kohl's ROIC % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Kohl's's ROIC % distribution charts can be found below:

* The bar in red indicates where Kohl's's ROIC % falls into.



Kohl's ROIC % Calculation

Kohl's's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jan. 2022 is calculated as:

ROIC % (A: Jan. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jan. 2021 ) + Invested Capital (A: Jan. 2022 ))/ count )
=1680 * ( 1 - 23.05% )/( (10659 + 10797)/ 2 )
=1292.76/10728
=12.05 %

where

Kohl's's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Apr. 2022 is calculated as:

ROIC % (Q: Apr. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2022 ) + Invested Capital (Q: Apr. 2022 ))/ count )
=328 * ( 1 - 0% )/( (10797 + 11612)/ 2 )
=328/11204.5
=2.93 %

where

Note: The Operating Income data used here is four times the quarterly (Apr. 2022) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Kohl's  (NYSE:KSS) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Kohl's's WACC % is 10.67%. Kohl's's ROIC % is 10.66% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Kohl's ROIC % Related Terms

Thank you for viewing the detailed overview of Kohl's's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kohl's Business Description

Kohl's logo
Address
N56 W17000 Ridgewood Drive, Menomonee Falls, WI, USA, 53051
Kohl's operates 1,165 department stores in 49 states that sell moderately priced private-label and national brand clothing, shoes, accessories, cosmetics, and home furnishings. Most of these stores are in strip centers. Kohl's also operates a large digital sales business. Women's apparel is Kohl's largest category, having generated 27% of its 2021 sales. The retailer, headquartered in Menomonee Falls, Wisconsin, opened its first department store in 1962.
Executives
Day Christine Mccormick director N56 W17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051
Jenkins Margaret L director 203 EAST MAINST P 12-02 SPARTANBURG SC 29319
Mitchell Robbin director W56 N17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051
Kelroy Jason J. officer: Sr.EVP,Gen. Counsel,Secretary W56 N17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051
Cosset Yael director 1014 VINE STREET CINCINNATI OH 45202
Timm Jill officer: Sr.EVP/Chief Financial Officer W56 N17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051
Gaffney Paul J officer: Sr. Exec. V.P., Ch. Tech. Off. N56 W17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051
Bender Michael J director 3980 BAUGHMAN GRANT ROAD NEW ALBANY OH 43054
Chini Marc A. officer: Sr. EVP/Chief People Officer W56 N17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051
Howe Douglas M. officer: Chief Merchandising Officer N56 W17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051-5660
Lavu Ratnakar officer: Sr. EVP, Chief Tech. Officer W56 N17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051-5660
Revelle Greg officer: Sr. EVP/Chief Marketing Off. N56 W17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051
Floyd H. Charles director 71 SOUTH WACKER DRIVE, 12TH FLOOR CHICAGO IL 60606
Besanko Bruce H officer: Chief Financial Officer N56 W17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051
Shapira Adrianne director C/O THE HAIN CELESTIAL GROUP, INC. 1111 MARCUS AVENUE LAKE SUCCESS NY 11050

Kohl's Headlines

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