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 the two companies. $2022$: $$0\mathrm{.}002021$: $$0\mathrm{.}002022$: $$0\mathrm{.}002021$: $$0\mathrm{.}00$

Explain how a company$$s free cash flow $($cash flow from operating activities minus capital expenditures$)$ impacts its growth potential. Free cash flow $-----------------------------------------------------------.$

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. $$0\mathrm{.}00$

KOHLS INC $$0\mathrm{.}00$

Academy Sports and Outdoors, Inc. $$0\mathrm{.}00$

Gross Profit

The Gap Inc.

KOHLS INC

Academy Sports and Outdoors, Inc.

Net Income

The Gap Inc.

KOHLS INC

Academy Sports and Outdoors, Inc.

EBITDA

The Gap Inc.

KOHLS INC

Academy Sports and Outdoors, Inc.

Balance Sheet Information

Total Assets

The Gap Inc.

KOHLS INC

Academy Sports and Outdoors, Inc.

Total Liabilities

The Gap Inc.

KOHLS INC

Academy Sports and Outdoors, Inc.

Total Stockholders' Equity

The Gap Inc.

KOHLS INC

Academy Sports and Outdoors, Inc.

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. $$0\mathrm{.}00$ $$0\mathrm{.}00$ #DIV$/0!$

KOHLS INC $$0\mathrm{.}00$ $$0\mathrm{.}00$ #DIV$/0!$

Academy Sports and Outdoors, Inc. $$0\mathrm{.}00$ $$0\mathrm{.}00$ #DIV$/0!$

Gross Margin Formula $($Gross Profits$/$Sales$)$ Gross Profits Sales Gross Margin

The Gap Inc. $$0\mathrm{.}00$ $$0\mathrm{.}00$ #DIV$/0!$

KOHLS INC $$0\mathrm{.}00$ $$0\mathrm{.}00$ #DIV$/0!$

Academy Sports and Outdoors, Inc. $$0\mathrm{.}00$ $$0\mathrm{.}00$ #DIV$/0!$

Operating Margin Formula $($Operating Income$/$Sales$)$ Operating Income Sales Operating Margin

The Gap Inc. $$0\mathrm{.}00$ #DIV$/0!$

KOHLS INC $$0\mathrm{.}00$ #DIV$/0!$

Academy Sports and Outdoors, Inc. $$0\mathrm{.}00$ #DIV$/0!$

Find the appropriate amounts from the $10$K 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 #DIV$/0!$ #DIV$/0!$ #DIV$/0!$

Return on equity $=$ Net Income$/$Shareholders$\text{'}$ Equity #DIV$/0!$ #DIV$/0!$ #DIV$/0!$

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$\text{'}$ Equity #DIV$/0!$ #DIV$/0!$ #DIV$/0!$

Debt$/$Assets $=$ Total Liabilities$/$Total Assets #DIV$/0!$ #DIV$/0!$ #DIV$/0!$

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.

KOHLS INC

Academy Sports and Outdoors, Inc.