The following factors represent some of the significant changes in the company for the past 5 years. As notated in the chart there has been a noticeable decline sales, gross margin, operating expenses, operating income and interest.
With the information provided in pages 17-25 from the JC Penny annual report I can state that there has been a decline in revenue in the operating expenses. As shown in the chart below the only year where there was not a decline was between the year 2009-2010. Although there was no increase the numbers reflect that it was the only year where the company didn't report negative change. When looking at the data for sales it shows there wasn’t significant changes year over year with the exception of 2012 where the company witnessed a -25% decline.
When reviewing the management statements for each of the three major financial statement in the JC Penny annual report, the organization seems to have poor stock turnover results, which indicates high stock retention and limited sales for the organization. Furthermore, the organization has extensive long-term liabilities which limit revenue reserves and working capital in the long-run. …show more content…
Based on the balance sheet it is clear that the amount of stock available at the end of 2011 was considerably higher than what was observed at the end of 2012. The heavy retention of closing stock meant reduced revenue at the close of 2011 compared to the huge profit realized in 2010. Based on the balance sheet we can see that the company is avoiding tax payment, which indicates a lack of funds or presence of poor decision-making on the part of
With the information provided in pages 17-25 from the JC Penny annual report I can state that there has been a decline in revenue in the operating expenses. As shown in the chart below the only year where there was not a decline was between the year 2009-2010. Although there was no increase the numbers reflect that it was the only year where the company didn't report negative change. When looking at the data for sales it shows there wasn’t significant changes year over year with the exception of 2012 where the company witnessed a -25% decline.
When reviewing the management statements for each of the three major financial statement in the JC Penny annual report, the organization seems to have poor stock turnover results, which indicates high stock retention and limited sales for the organization. Furthermore, the organization has extensive long-term liabilities which limit revenue reserves and working capital in the long-run. …show more content…
Based on the balance sheet it is clear that the amount of stock available at the end of 2011 was considerably higher than what was observed at the end of 2012. The heavy retention of closing stock meant reduced revenue at the close of 2011 compared to the huge profit realized in 2010. Based on the balance sheet we can see that the company is avoiding tax payment, which indicates a lack of funds or presence of poor decision-making on the part of