We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Kmart Analysis - Essay Example

Comments (0) Cite this document
Summary to essay on topic "Kmart Analysis"
Kmart is the third largest discount retailer in America. It is engaged in the mass merchandising business having 1,479 Kmart and Kmart Super Center retail stores in America. The Kmart business consists of Big Kmart, Kmart Super Centers and traditional Kmart stores where the company provides retail and merchandising services to millions of American customers…
Download full paper
Polish This Essay
Kmart Analysis
Read TextPreview

Extract of essay "Kmart Analysis"

Download file "Kmart Analysis" to see previous pages... Kmart deals in a wide range of retail products. The company principally provides the grocery items on its retail stores along with other consumer products such as women's and kids apparels, fashion clothing, gifts, toys, baby and kids beddings, furniture, nursery products, jewelry, electronics, home appliances,
Let us write or edit the essay on your topic "Kmart Analysis" with a personal 20% discount.. Try it now
fragrances, personal care items and sports, leisure and fitness goods etc ("Kmart Home", n.d.)
Kmart's business operations fall under discount retailing industry. It confronts with overwhelming competition in the industry from the significant retail giants such as Wal-Mart, Target stores, Kohl's and J.C. Penney etc.
Kmart has shown a comeback in the industry after the bankruptcy with a vision to deliver value to its customers and shareholders in an identical manner. It aims for constant expansion with a view to advance in terms of sale and profitability records, to enhance the efficacy and alleviate the costs, to strengthen and elevate the utilization of assets towards increasing profits etc ("Corporate History", n.d.)
The following chart depicts a snapshot of K-mart's financial ratios ("Kmart Corporation", n.d.) compared to the discount retailing industry average ("Retail (Department & Discount) Industry", n.d.) along with two of its competitors i.e., Wal-Mart ("Ratios for Wal-Mart", n.d.) and Target ("Ratios for Target", n.d.), so as to provide a better insight into the company's financial position and performance with respect to that of its industry and competitors:



Kmart

Industry

Wal-Mart

Target

Quick Ratio

2.0

0.26

0.13

0.89

Current Ratio

3.6

1.17

0.89

1.50

Debt to Equity

0.93

0.55

0.54

0.70

Gross Margin

25.9%

27.50%

23.17%

32.15%

Net Profit Margin

5.6%

3.80%

3.49%

4.58%

Return On Assets

10.1%

7.43%

8.32%

7.30%

Cash Conversion Cycle

67 days

39 days

14 days

39 days
An examination of the above chart straightens out a fine line between Kmart, its major competitors and the whole discount retail industry. The further in-depth interpretation and analysis of the above presented ratios is provided below to compare Kmart's financial position and performance with its competitors and other companies in the same industry:
Current Ratio:
The current ratio reflects the liquidity position of a company in terms of a comparison of its current assets and current liabilities. Kmart's current ratio is 3.6:1, which means that the company keeps $3.6 worth of liquid assets against every $1 worth of current liabilities. The current ratio of Kmart is much higher than that of the discount retail industry as well as Wal-Mart and Target Corporation individually. Apart from showing a sound liquidity position of the company, it emphasizes the fact that much of the company's current assets are lying idle without being invested further.
Quick Ratio:
An investigation of the above ratio comparison reveals that the Kmart Corporation's quick ratio is much higher than that of its industry and competitors. Kmart's quick ratio is 2.0, which shows that Kmart is much capable to pay off its short-term debts and liabilities after keeping aside the inventory than all the other companies in the industry. The difference between the current and quick ratios explicit the quantity of stock held by company, which is about 55% of the total current assets for Kmart.


Debt to ...Download file "Kmart Analysis" to see next pagesRead More
Cite this document "Kmart Analysis"
  • APA
  • MLA
  • CHICAGO
(“Kmart Analysis Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Kmart Analysis Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/miscellaneous/1511019-kmart-analysis
(Kmart Analysis Essay Example | Topics and Well Written Essays - 1250 Words)
Kmart Analysis Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/miscellaneous/1511019-kmart-analysis.
“Kmart Analysis Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1511019-kmart-analysis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "Kmart Analysis"
Competitive Profiles Matrix of Walmart
The Retailer has more that 2.1 million employees with a turn over of $ 408,214,000,000. The main vision of the company is to sell products at lower prices that enable its customer to save in order to attain satisfaction and sustainability. The main competitors for the Retailer are Kmart, Target, Soriano, ShoKo, Canada’s Zellers, The Real Canadian Supermart, Giant Tiger, Commercial Mexicana and Meija.
2 Pages(500 words)Essay
Market Opportunity Analysis - Walmart
Customers’ tastes are changing from time to time not only in retail industry but also in almost every industry. So, a business should be aware of the ever changing consumer tastes and behaviors to be successful in the long run.
12 Pages(3000 words)Essay
Wal-Mart, Target and Kmart
Wal-Mart, Target and Kmart are the top retailers in the present American market. Each of them is having more than 1000 stores. Wal-Mart is the king of the ring. It's the number one retailer in United States of America. Target is slowly moving closer to Wal-Mart and has become a tough competitor to Wal-Mart.
2 Pages(500 words)Essay
Strategic management (structural industry analysis)
According to Kotelnikov, Porter's Model is particularly useful in that it "outlines the primary forces that determine competitiveness within an industry and illustrates how those forces are related. The model suggests that in order to develop effective organizational strategies, managers must understand and react to those external forces within an industry that determine an organization's level of competitiveness within an industry" (2007, p.
3 Pages(750 words)Essay
Kmart De Mexico
This report envisages analyzing these key issues, discuss the alternatives available to the corporation, identify the best possible course of action and suggest suitable implementation plan where necessary. In the course of such analysis, the report takes into account the different cultural and behvioural factors of consumers and employee groups of Mexico, as they are quite different from those of the United States where Kmart is operating currently.
6 Pages(1500 words)Case Study
How will the Joint Venture Kmart Survive in the Mexican Market
He is also thinking of how the products(Harvard Business School, 2000) will be priced in Mexico. The culture and customer behavior habits of Mexicans is also in his mind. After the bankruptcy of Kmart, Canada when NAFTA was imposed, he is speculating his next move.
5 Pages(1250 words)Essay
Compare the five Business functions in two organisations (SEE INSTRUCTIONS)
gansation depends upon the five key functions namely, the marketing, operations, human resource management, accounting and finance, and information management. These functions do not operate in isolation with each other. They are interdependent. However, it must be noted that
15 Pages(3750 words)Essay
Wal-Mart Effect
In any marketing sector marketing plan is considered to be very important and a thoughtful business plan cannot be overemphasizes because much hinges on it: financial support, management of the available resources like operation and finances, credit from suppliers, promotion and marketing.
5 Pages(1250 words)Essay
Strategic Analysis and Choice
Discuss (with examples) different scenarios how this can be exploited. You can draw on primary and / or secondary sources of information. It details the marketing strategy for the organization by way
13 Pages(3250 words)Essay
Kmart
The corporations are then required to alter the business according to the internal environment and the different concepts that are associated with the main functioning of the corporation. An example of the changes of business is seen through Kmart and the emergence
20 Pages(5000 words)Research Paper
Let us find you another Essay on topic Kmart Analysis for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us