Course Project 2 Assignment Comparing Kohl's and J.C.Penney

Topics: Financial ratios, Balance sheet, Generally Accepted Accounting Principles Pages: 4 (934 words) Published: August 27, 2013
Khol's CorporationJC Penny Corporation

Earnings per shareAs given in the income statement$3.67$1.64The comparison of these two numbers are not meaningful, the number of shares outstanding differs tremendously.

Current ratioCurrent assets$5,645=2.08$6,370=2.41Kohl's inventory turnover is slightly better by .3 than JC Penney. This might indicate that Kohl's volume of sales in terms of inventory is better than JC Penney.

Current liabilities$2,710$2,647

Gross profit ratioGross profit $7,032=38.2%$6,960=39.2%JC Penney's gross profit ratio is better than Kohl's gross profit ratio by almost 1% (39.2% - 38.2%)
Net Sales$18,391$17,759

Profit margin ratioNet Income$1,114=6.1%$389=2.2%Kohl's is more profitable based on the profit margin ratio because it earns 6 cents for every $1.00 in sales as compared to 2 cents earning per $1.00 of JC Penney.

Net Sales$18,391$17,759

Inventory turnoverCost of Goods Sold$11,3593.8$10,799,0003.5Kohl's inventory turnover is slightly better by .3 than JC Penney. This might indicate that Kohl's volume of sales in terms of inventory is better than JC Penney.

Average Inventory$2,980times$3,118,500times

Days in inventory365 days365=96365=105The result of the days' in inventory is consistent with the inventory turnover. The result is in favor of Kohl's. Kohl's has the ability to sell its inventory 9 days (105-96) ahead compared to JC Penney.

Inventory turnover3.8days3.5days

Receivable turnover ratioNet credit sales=Not Applicable=Not applicable - there is no accounts receivable on the annual report of both companies.
Average Net Receivables

Average collection period365=Not Applicable=Not applicable - there is no accounts receivable on the annual report of both companies....
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