Kohl’s management purchased 40 stores in Wisconsin and Indiana from the founding company of BATUS (British-American Tobacco Co.) in 1986 and became known as ‘one of the largest discount department store chains in the United States’ (Kohl’s Corporation History). Spending three years developing their Kohl’s concept of moderately priced apparel for middle-income families, Kohl’s began expanding from the mid-west in 1988. With over 33,000 employees Kohl’s is based out of Menomonee Falls, Wisconsin and operates 1,146 stores nationwide. Kohl’s sells jewelry, clothing accessories, cosmetics, shoes, small kitchen appliances and cookware, bedroom and bathroom linens, as well as clothing for men, women, and children. These items include nationally recognized names, and more recently lines designed for Kohl’s by well known designers such as Vera Wang.
($ in millions, except per share data)JC Penney IncKohls CorpInterpretation and comparison Earnings per shareAs given on the income statement=$1.60=$3.67Comparing these numbers is not meaningful since the number of oustanding shares differs.
Current ratio:Current assts$6,370=2.415,645=2.08J.C.Penney has $2.41 in current assets for every $1in current liabilities. Where Kohl's has only $2.08. Based on this J.C. Penney is more liquid.
Gross profit ratio:Gross profit (net sales- cost of goods sold)6,960=39.19%7,032=38.24%J.C.Penney's gross profit ratio is better than Kohl's almost 1% (39.19%-38.24%=0.95%)
Profit margin ratio:Net income389=2.19%1,114=6.06%Kohl's is more profitable when comparing profit margin ratio. They earn 6 cents for every $1 in sales compared to the 2 cents J.C. Penney earns.
Inventory Turnover:Cost of goods sold10,799=3.3611,359=3.74Kohl's inventory turnover ratio is better by 0.38 (3.74-3.36=0.38) over J.C. Penney. Possibly indicative that Kohl's volume of sales in terms of inventory is better than J.C. Penney
Days in inventory:365 days365=108.60365=97.56The results in line with the inventory turnover ratio favor Kohl's. Kohl's sells their inventory 11 days faster than J.C. Penney (108-97.56)
Receivable turnover ratio:Net credit sales0=00=0Not applicable. No accounts recievable or credit sales listed on the annual report of either company.
Average net receivables00...