Accounting and Finance: Managerial Use and Analysis Essay examples

1659 Words Oct 1st, 2012 7 Pages
Rahul Balhara
Accounting and Finance: Managerial Use and Analysis MAR12 Sec C
Financial Statement Analysis Project -- A Comparative Analysis of Kohl’s Corporation and J.C. Penney Co MAR12 Sec C
Analysis of Kohl’s Corporation and J.C. Penney Corporation

J.C. Penney was founded by James Cash Penney in 1902. This Plano, Texas based company is presently providing family apparel and footwear, accessories, jewelries, beauty products and home furnishings via 1,100 department stores as of December 7, 2011 in the United States and Puerto
Rico. The company is also taking advantage of technology by making JC
Penney's products available online through its Internet Web Site jcpenney.com. This more than a century old company also
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Therefore, Kohl's is more profitable based on this ratio. =
58.14%
Kohl's require to liquidate 40.27% of its assets at their book value to satisfy their obligations while JC
Penney must liquidate 58.14% of its assets at their book value to satisfy their obligations. This ratio tells us that the stockholder's interest is larger at Kohl's compared to JC Penney.
=
3.6
Kohl's ability to pay its obligation is in a better position compared to JC Penney based on this ratio.
Kohl's times-interest earned ratio is significantly higher than JC Penney.
=
48.59%
Not Applicable - Kohl's did not declare and pay dividend on 2010.
=
8%
Kolh's earning for every dollar invested by common stockholders is better by 6 cents as compared to JC
Penney so Kohl's is more profitable based on this ratio. Kohl's has $915M in free cash flow while JC Penney has -$96M based on the provided solution but $158M if based on the computation provided by the annual report. Regardless, Kohl's has the advantage on this
= ($96,000,000) particular ratio.
= $158,000,000
=
0.20
Kohl's 66 cents in cash provided by operation in relation to average current liabilities is better than JC
Penney's 20 cents so Kohl's is more liquid based on this liquidity ratio.
=
0.08
Kolh's 31 cents in cash provided by operating

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