Course Project 2 Assignment Comparing Kohl's and J.C.Penney
Khol's Corporation JC Penny Corporation Earnings per share As given in the income statement $3.67 $1.64 The comparison of these two numbers are not meaningful, the number of shares outstanding differs tremendously.
Current ratio Current assets $5,645 = 2.08 $6,370 = 2.41 Kohl'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 ratio Gross 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 ratio Net 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 turnover Cost of Goods Sold $11,359 3.8 $10,799,000 3.5 Kohl'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 $2,980 times $3,118,500 times
Days in inventory 365 days 365 = 96 365 = 105 The 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 turnover 3.8 days 3.5 days
Receivable turnover ratio Net credit sales = Not Applicable = Not applicable - there is no accounts receivable on the annual report of both companies. Average Net Receivables Average collection period 365 = Not Applicable = Not applicable - there is no accounts receivable on the annual report of both companies.
Current ratio Current assets $5,645 = 2.08 $6,370 = 2.41 Kohl'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 ratio Gross 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 ratio Net 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 turnover Cost of Goods Sold $11,359 3.8 $10,799,000 3.5 Kohl'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 $2,980 times $3,118,500 times
Days in inventory 365 days 365 = 96 365 = 105 The 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 turnover 3.8 days 3.5 days
Receivable turnover ratio Net credit sales = Not Applicable = Not applicable - there is no accounts receivable on the annual report of both companies. Average Net Receivables Average collection period 365 = Not Applicable = Not applicable - there is no accounts receivable on the annual report of both companies.