Discuss the performance of the stocks, how the company's performance impacts the stock performance, and their investment
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Question:
Company Analysis | |||
U.S. Stock exchange: Company Name: | Company 1 - TJX Companies, Inc. | Company 2 - Ross Stores, Inc. | |
Determine the free cash flow for the last two most recent years for TJX Companies, Inc, and Ross Stores, Inc. | 2022: $2.012B 2021: $3.994B | 2022: $1.181B 2021: $1.841B | |
Explain how a company's free cash flow (cash flow from operating activities minus capital expenditures) impacts its growth potential. | |||
Instructions: Find the numbers for these calculations from the income statement or balance sheet for each company from the annual report or 10-K. Make sure the numbers are not from the 10-Q or quarterly report as you want to make apples to apples comparisons. | |||
Your Name: | |||
Industry: | Retail | ||
Company 1 Name: | The Gap Inc. | ||
Company 2 Name: | KOHLS INC | ||
Company 3 Name: | Academy Sports and Outdoors, Inc. | ||
Income Statement Information | |||
Total Revenue | |||
The Gap Inc. 2023 | $15,616.00 | ||
KOHLS INC 2023 | $18,098.00 | ||
Academy Sports and Outdoors, Inc. 2023 | $6,395.07 | ||
Gross Profit | |||
The Gap Inc. 2023 | $5,359.00 | ||
KOHLS INC 2023 | $6,641.00 | ||
Academy Sports and Outdoors, Inc. 2023 | $2,213.50 | ||
Net Income | |||
The Gap Inc. 2023 | -$202.00 | ||
KOHLS INC 202 | -$19.00 | ||
Academy Sports and Outdoors, Inc. 2023 | $628.00 | ||
EBITDA | |||
The Gap Inc. 2024 | $ 0.477,000 | ||
KOHLS INC 2022 | $1,054.00 | ||
Academy Sports and Outdoors, Inc. 2023 | $956.00 | ||
Balance Sheet Information | |||
Total Assets | |||
The Gap Inc. 2023 | $11,386.00 | ||
KOHLS INC 2023 | $14,345.00 | ||
Academy Sports and Outdoors, Inc. 2023 | $4,595.00 | ||
Total Liabilities | |||
The Gap Inc. 2023 | $9,153.00 | ||
KOHLS INC 2023 | $10,582.00 | ||
Academy Sports and Outdoors, Inc. 2023 | $2,967.00 | ||
Total Stockholders' Equity 2023 | |||
The Gap Inc. 2023 | $2,233.00 | ||
KOHLS INC 2023 | $3,763.00 | ||
Academy Sports and Outdoors, Inc. 2023 | $1,628.00 | ||
Ratios Calculations | |||
Calculate the Following Ratios: | |||
Debt to Equity Ratio Formula (Total Debt/Total Equity) | Total Debt | Total Equity | Debt to Equity Ratio |
The Gap Inc. | $9,153.00 | $2,233.00 | 4.10 |
KOHLS INC | $10,582.00 | $3,763.00 | 2.81 |
Academy Sports and Outdoors, Inc. | $2,967.00 | $1,628.00 | 1.82 |
Gross Margin Formula (Gross Profits/Sales) | Gross Profits | Sales | Gross Margin |
The Gap Inc. | $5,359.00 | $15,616.00 | 34.32% |
KOHLS INC | $6,641.00 | $18,098.00 | 36.69% |
Academy Sports and Outdoors, Inc. | $2,213.50 | $6,395.07 | 34.61% |
Operating Margin Formula (Operating Income/Sales) | Operating Income | Sales | Operating Margin |
The Gap Inc. | $15,616.00 | 0.00% | |
KOHLS INC | $18,098.00 | 0.00% | |
Academy Sports and Outdoors, Inc. | $6,395.07 | 0.00% | |
Find the appropriate amounts from the 10K annual report and insert them into the formula to calculate. | |||
Formulas | The Gap Inc. | KOHLS INC | Academy Sports and Outdoors, Inc. |
Profitability ratios: | |||
Profit margin = Net Income/Sales | -1.29% | -0.10% | 9.82% |
Return on equity = Net Income/Shareholders' Equity | -9.05% | -0.50% | 38.57% |
Efficiency ratios: | |||
Inventory turnover = Cost of Goods Sold/Average Inventory | |||
Accounts receivable turnover = Net Sales/Average Accounts Receivable | |||
Leverage ratios: | |||
Debt to equity ratio = Total Liabilities/Shareholders' Equity | 4.10 | 2.81 | 1.82 |
Debt/Assets = Total Liabilities/Total Assets | 0.80 | 0.74 | 0.65 |
Liquidity ratios: | |||
Current ratio = Current Assets/Current Liabilities | |||
Quick ratio = (Current Assets - Inventory)/Current Liabilities | |||
Discuss three takeaways or an analysis of what you've learned about each company based on their financial data. Include at least one paragraph for each company. | |||
Analysis | |||
The Gap Inc. | Profitability can be measured by looking at profit margins and return on equity. Efficiency ratios can give insight into how well the company manages inventory and collects receivables. Leverage ratios help gauge the level of debt used for financing. To assess a company's financial health, it's important to evaluate its profitability through profit margins and return on equity. Examining efficiency ratios can reveal how well a company manages inventory and collects receivables. Analyzing leverage ratios can indicate the level of debt used for financing. | ||
KOHLS INC | When assessing a company's financial health, it's important to evaluate its profitability and return on equity. This will give you an idea of how well the company performs and how much value it generates for its shareholders. Another important factor to consider is efficiency ratios, which can give insight into how well the company manages its inventory and accounts receivable. Finally, leverage ratios can help you determine the extent of debt in the company's capital structure. | ||
Academy Sports and Outdoors, Inc. | It's good to compare these ratios with industry averages and historical data and consider qualitative factors and the current economic environment to get a clearer picture. Profitability ratios can help you understand how efficiently a company converts its sales into profit. Efficiency ratios can provide insight into inventory and receivables management, while leverage ratios can indicate the level of debt used for financing. These factors are important in assessing a company's financial health and making informed decisions. | ||
Stock Analysis | ||
Instructions: Find the numbers for these calculations from the income statement or balance sheet for each company from the annual report or 10-K. Make sure the numbers are not from the 10-Q or quarterly report as you want to make apples to apples comparisons. | ||
Your Name: | Michelle Doggett | |
Industry: | Retail | |
Company 1 Name: | The GAP Inc. | |
Company 2 Name: | KOHL'S INC | |
Company 3 Name: | Academy Sports and Outdoors, Inc. | |
Stock | ||
Ticker Symbol | ||
GPS | ||
KSS | ||
ASO | ||
Stock Price Include the stock price at the balance sheet date.(Stock prices fluctuate daily and are available in the Wall Street Journal) | ||
Fiscal Year End Date: | ||
The GAP Inc. | ||
KOHL'S INC | ||
Academy Sports and Outdoors, Inc. | ||
Market Cap Formula (Share Price/Number of Shares) | ||
The GAP Inc. | ||
KOHL'S INC | ||
Academy Sports and Outdoors, Inc. | ||
Price to Earnings Ratio Formula (Share Price/EPS) | ||
The GAP Inc. | ||
KOHL'S INC | ||
Academy Sports and Outdoors, Inc. | ||
Current Dividend Yield - Year End Formula (DPS/Share Price) | ||
The GAP Inc. | ||
KOHL'S INC | ||
Academy Sports and Outdoors, Inc. | ||
Analysis | ||
The GAP Inc. | ||
KOHL'S INC | ||
Academy Sports and Outdoors, Inc. | ||
Related Book For
Excellence in Business Communication
ISBN: 978-0136103769
9th edition
Authors: John V. Thill, Courtland L. Bovee
Posted Date: