FINANCIAL ACCOUNTING

Kohl’s Corporation and Dillard’s Inc. – Financial Statement Analysis

A.

Kohl’s Corporation and Dillard’s Inc. are in the retail industry which is a highly competitive industry. There are a high number of retail stores, department stores which compete between each other on local, regional and national level. That competitiveness is highly influencing operating results of the company.

The importance of the retail industry emphasizes the sentence below:

“An estimated two-thirds of the U.S. gross domestic product (GDP) comes from retail consumption. Therefore, store closings and openings are an indicator of how well the U.S. economy is recovering after the Great Recession in the late 2000's.”[1] …show more content…
|4.6% |4.8% |1.7% |
| |Merchandise inventories |27.0% |28.5% |24.4% |
| |Accounts Receivable |0.0% |0.0% |18.0% |
| |Deferred Income Taxes |0.7% |0.4% |0.3% |
| |Other |1.3% |1.7% |0.7% |
| |Total Current Assets |35.3% |37.6% |46.6% |
| | | | | |
| |Property and equipment, net |61.6% |59.3% |50.4% |
| |Favorable lease rights, net |2.0% |2.4% |2.3% |
| |Goodwill |0.1% |0.1% |0.1% |
| |Other assets |1.0% |0.6%