Kohl’s J.C. PenneyInterpretation and Comparison between the two companies' ratios (Reading the Appendix of Chapter 13 will help you prepare the commentary)
Earnings per shareAs given in the income statement$3.67Basic Common$1.60
Earning per share express net income earned on a per share basis which provides a useful information for shareholders to determin profitability .Kohl's earning per share is lot higher than JC Penne.
Current ratioCurrent assets$5,645=2.08$6,370=2.41
Current liabilities$2,710$2,647The current ratio is used to measure and determine the company’s short-term debt-paying ability. JC Penne has a higher ratio than Kohl's.
Gross Profit RatioGross profit $7,032=38.2%$6,960=39.2%
Net Sales$18,391$17,759Gross profit ratio measures the margin by which selling price exceeds cost of goods sold. JC Pennee has a slightly higher ration than Kohl's.
Profit margin ratioNet Income$1,114=6.1%$389=2.2%
Net Sales$18,391$17,759profit margin ratio is a measure of the percentage of each dollar of sales that results in net income. Kohl's ratio is three time higher than JC Penne.
Inventory TurnoverCost of Goods Sold$11,3593.8$10,7993.5
Average Inventory$2,980times$3,119timesInventory turn over ratio measures the number of times average inventory was sold during the period. Kohl's inventory ratio is slightly higher than JC Penne's.
Days in Inventory365 days365=96365=105
Inventory turnover3.8days3.5daysIt measures the average number of days inventory is held. JC Penne hold their...