Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2022', KSS's return on equity was 20.1%, measuring profitability for shareholders. Industry average for Department/Specialty Retail Stores in '2022' stood at 32.3%.
• In '2023', KSS's return on equity was -0.4%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Department/Specialty Retail Stores in '2023' stood at 26.1%. Industry average declined by 6.3% from previous year.
• In '2024', KSS's return on equity was 8.3%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Department/Specialty Retail Stores in '2024' stood at 21.7%. Industry average declined by 4.3% from previous year.
• In '2025', KSS's return on equity was 2.8%, measuring profitability for shareholders. The decline from '2024' may indicate some operational or financial challenges. Industry average for Department/Specialty Retail Stores in '2025' stood at 15.1%. Industry average declined by 6.6% from previous year.
Overall, KSS's return on equity has been volatile but showed a downward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.