Premium Essay

Kohl's & Jcpenny Financials

In:

Submitted By studytax
Words 456
Pages 2
Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab and also include your commentary.

The financial statements used to calculate these ratios are available in Appendix A and Appendix B of your textbook.
Interpretation and comparison between the two companies' ratios (reading the Appendix of Chapter 13 will help you prepare the commentary).
Kohl's

JcPenny
The comparison of the ratios is an important part of the project. A good approach is to briefly explain what the ratio tells us. Indicate whether a higher or lower ratio is better. Then compare the two companies on this basis. Remember—each ratio below requires a comparison.

Earnings per Share of Common Stock (basic - common)

Current Ratio

Gross Profit Margin

Rate of Return (Net Profit Margin) on Sales

Inventory Turnover

Days' inventory outstanding (DIO)

As given in the income statement

$3.67

Current assets
Current liabilities

5,645

2.08

$6,370
$2,647

=

2.41

=

38.2%

$6,960
$17,759

=

39.2%

=

6.1%

$389
$17,759

=

2.2%

3.8 times $10,799
$3,119

=

96 days 365
3.5

=

105 days =

#DIV/0!

$6,644,252
$430,441

=

15.4

#DIV/0! days 365
15.4

=

23.6 days 2,710

Gross profit
Net Sales

$18,391

Net Income
Net Sales

$18,391

Cost of Goods Sold
Average Inventory

365 days
Inventory turnover

Accounts Receivable Turnover

Net credit sales
Average Net Accounts Receivable

Days' sales outstanding (DSO)

7,032

$1,114

11,359
2,980

365
3.8

365
Receivable Turnover Ratio

Asset turnover

Rate of Return on Total Assets (ROA)

Debt Ratio

Times-Interest-Earned Ratio

Dividend Yield

Rate of Return on Common Stockholders' Equity (ROE)

Free cash flow

Price/Earnings Ratio (Multiple)
(please see the instructions for the dates to use for this ratio)

1.64

=

=

3.5 times Net Sales
Average Total Assets

=

#DIV/0!

$6,644,252
$4,580,967

=

1.45

Rate of

Similar Documents

Free Essay

Compensation System in Industrial Enterprise

...It is important both for employees and employers. Sound compensation can attract, motivate and retain competent employees of an organization. Compensation once determined should not remain same for years. It should be reviewed and changed after certain period through proper pay survey. Ha-Meem Group, a Bangladeshi clothing manufacturer, is leading supplier of readymade garments and denim fabric in the world. They are one of the top clothing companies in Bangladesh. The company produces some of the most fashionable denim fabrics and garment products and owns one of the most comprehensive and resourceful manufacturing facilities in Bangladesh.  Moreover as a Bangladeshi clothing manufacturer they have been contributing immensely in the financial growth of the nation. It all started with a garment company in 1984 and two enterprising men Mr. A. K. Azad and Mr. Delwar’s vision to break through in the textile industry and making Ha-Meem Group a leading wholesale clothing...

Words: 1825 - Pages: 8

Premium Essay

J.C. Penny Corporation, Inc. Company Analysis and Prognosis

...  Inc.   Company  Analysis  and  Prognosis     Tasha    Liberman   CASE  STUDY  BACKGROUNDER  #2   MGMT  498 nd July  22 ,  2013       Table  of  Contents   Introduction .............................................................................................................................. 1   Company  &  Industry  Background...................................................................................... 1   Company  Strategies ............................................................................................................ 1-­2   Current  Financial  Performance.......................................................................................... 2   Financial  Performance  Compare  to  Sub-­Sector ........................................................ 2-­3   Primary  Macro-­Level  Forces ............................................................................................... 3   Micro-­Level  Forces.................................................................................................................. 4   Primary  Strengths  and  Weaknesses ................................................................................. 4   Risk  and  Rewards  Potential............................................................................................. 4-­5   Three-­year...

Words: 2107 - Pages: 9

Premium Essay

Jcp vs Target Week 7 Final

...Retail Giants: JCPenney vs. Target Kelly Greenwood October 2, 2011 Columbia College   JCPenney: History In business since April 1902, when James Cash Penney opened “The Golden Rule, a dry good and clothing store in Kemmerer, Wyoming. Although the name of the store was changed to JCPenney, in 1907, the company’s “Golden Rule” philosophy (do unto others as you would have them do unto you) remains unchanged. In 1927, JCPenney was listed on the NY Stock Exchange. Currently, JCPenney operates 1,108 department stores thoughout the U.S. and Puerto Rico, providing 112 million square feet of selling space. JCPenney offers private, exclusive and national brands. Its private brands are “developed, designed and sourced in-house, generating nearly 50 percent of the Company’s annual revenue.” (JCPenney, 2011) JCPenney has partnered with Sephora, Call It Spring™, MNG by Mango® and Modern Bride® to create a boutique style shopping experience within the JCPenney store. JCPenney “sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating.” (Yahoo Finance, 2011) It hosts one of the largest apparel and home furnishings e-commerce sites, posting revenues in excess of $1.5 billion in 2010. JCPenney posted approximately $17.8 billion in total revenues in 2010. “JCPenney has a balance of both mall-based and off-mall stores. Productivity...

Words: 5761 - Pages: 24

Premium Essay

Report

...NYSSA Student Research This report is published for educational purpose only by students competing in the Investment Research Challenge. Industry: Apparel and Accessories Phillips-Van Heusen Recommendation: BUY Price Target: $23.50 4Q $0.6 0.4 0.4 0.7 Year $3.7 3.2 2.3 2.7 P/E 10.7x 5.6x 7.8x 6.6x 2Q $0.8 0.6 0.4 0.4 3Q $1.2 1.0 0.8 0.9 Ticker: PVH Price: $17.90 (as of Jan. 20, 2009) Team J Jan. 26, 2009 EPS 2007A 2008E 2009E 2010E 1Q $1.1 1.2 0.7 0.7 Note: PVH fiscal years are based on the 52-53 week period ending on the Sunday closest to February 1 and are designated by the calendar year in which the fiscal year commences. PVH: In Strong Position to Weather This Recession  Strong Growth from International Licensing, Contributing Higher Margins: Ck Calvin Klein is well recognized as a high-end brand in Asia, and regional licensees are committed to a minimum sales level, according to our interview with local licensees. International licensee Warnaco is still aggressively opening new stores in the new markets. We believe that certain international markets will recover from the global slowdown sooner than the US and will continue to contribute strong growth to PVH. Furthermore, the licensing business contributes a 100% gross margin, which improves overall profitability when the licensing business grows faster than other segments. Margins Maintained Due to Established Relationships with Distributors and Retailers: During the 2000 downturn, distributor‟s margins...

Words: 13599 - Pages: 55