ipl-logo

Comparative Analysis Of J. C. Penney's Corporation

781 Words4 Pages

RATIO ANALYSIS OF J.C. PENNEY CORPORATION & KOHL?S CORPORATION Comparative Analysis by Ratio Analysis of J.C. Penney Corporation & Kohl?s Corporation Dora I. Gonzalez Devry University Abstract J.C. Penney Company, Inc. and Kohl?s Corporation are two of the largest apparel and home furnishing retailers with stores across the US and Puerto Rico. The primary objective of analyzing financial statements is to identify major changes in trends, investigate causes of underlying changes, and see the correlation of the two. Ratio analysis is a financial analysis technique which analysis the relationship among two or more line items on the financial statements. Financial ratios evaluate aspects of an entity?s operations and are …show more content…

Current ratio enables us to examine the liquidity of the business by equating the amount of current assets to current liabilities. Although current ratio fluctuates from industry to industry, is preferred to have at least one dollar of current assets for every dollar of current liabilities. Kohl's has the advantage over J.C Penney, as Kohl's current ratio is 1.87 in comparison to J.C. Penney?s ratio of 1.67. Kohl?s Corporation can pay all of its current liability and still have a positive working capital better than J.C. …show more content…

Dupont Analysis enables us to answer this question. Kohl?s Corporation Dupont analysis is 12% consisting of 4% (profit margin) x 1.41 (total asset turnover) x 2.48 (financial leverage). Compared to J.C. Penney?s Dupont analysis of -39% consisting of -4% (profit margin) x 1.34 (total asset turnover) x 7.21 (financial leverage). Kohl?s Corporation is generating sales while maintaining a lower COGS as demonstrated by its higher profit margin, and turning over large amount of sales. Although J.C. Penney Corporation has a negative profit margin, the company is heavily using their financial leverage. Although they are borrowing high amount of money to magnify profit potential, its? profit per share is -$1.68. To summarize, the company is using too much leverage, and if they continue, company could go into

Show More
Related

  • Kohl's Vs Jcpenny Case Study

    626 Words  | 3 Pages

    After making several calculations on both Kohl’s and JCPenny’s finical statements it is clear that Kohl’s is in a better financial position. Starting with over an 8-point gap between Kohl’s 3.50 net profit margin, to JCPenny’s -4.06 net profit margin. This proves that Kohl’s is more profitable making 3.50 dollars of income for every item sold, on average. Kohl’s is the better company to invest in but JCPenney is slowly pulling themselves out of a financial crisis. According to Investopedia, “Kohls is opening a new outlet store it calls Off-Aisles… if this concept works, which it likely will, considering consumer conditions, look for Kohl’s to ramp it up, big time.

    Read More

  • Analyzing John Lewis Annual Report

    911 Words  | 4 Pages

    The business used this information to make a strategic decision. They had to decide how to raise gross sales and revenue. John Lewis created and

    Read More

  • J. C. Penney Company

    322 Words  | 2 Pages

    J. C. Penney Company, Inc. (JCP) is one of America 's largest store department of retailers. In 1902, James Cash Penney established the primary J. C. Penney store of department, initially named The Golden Rule, in the little mining town of Kemmerer in Wyoming. From that moment, J. C. Penney has gotten to be one of the biggest retailers in the discount and department of the retail business in 49 states with 1033 stores including Puerto Rico. Moreover, J. C. Penney works J. C. Penney operates “One of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation’s largest general merchandise catalog business”

    Read More

  • Cango Financial Analysis Essay

    602 Words  | 3 Pages

    Inventory Turnover Ratio Debt to Equity Ratio Current Ratio Net Profit

    Read More

  • Financial Analysis Of Macy's

    1606 Words  | 7 Pages

    The three companies chosen are: 1. MACYS 2. KOHLS and 3. DILLARDS Macys is registered as Macy’s, was incorporated in the state of Delaware, fiscal year-end is 02/3/2018, with its stocks listed on the New York Stock exchange (NYSE) www.sec.gov/edgar.shtml.

    Read More

  • Why Is Jcpenney Successful

    1499 Words  | 6 Pages

    The recent introduction of the “fair and square” pricing model has not proved successful. Another weakness of the company is a severe deterioration of their cash position. At the end of 2010 they boasted a cash position of $2.6 billion, but at the end of 2012 they only had $930 million. JCP faces competition from a variety of retailers, being a “middle market” retailer they face competition from high-end retailers like Nordstrom, and bargain retailer’s like Kohls’.

    Read More

  • JC Penney's Management Team

    452 Words  | 2 Pages

    JC Penney’s was founded in 1902 by James Cash Penney and is now a multinational retailer, operating over 1000 department stores in 49 states and Puerto Rico. James Penney opened his original dry goods store in Kemmerer, Wyoming and named it the Golden Rule Store to emphasize his personal and business philosophy of treating others as he would want to be treated. The original dry goods store expanded to a department store, and was incorporated in 1924 in Delaware and traded on the New York Stock Exchange. JC Penney now sells a variety of family apparel and footwear, accessories, and fine and fashion jewelry.

    Read More

  • Costco Financial Ratios

    767 Words  | 4 Pages

    ORGANIZATIONAL ANALYSIS Financial Analysis Analyzing the competitive landscape is critical to assess the overall standing of Costco in relation to its peers. However, a financial evaluation is essential for investment purposes. A glance at the balance sheet (Exhibit 5), income statement (Exhibit 6) and the cash flow statement (Exhibit 7) will support to analyze and understand the organization’s present implementation and evaluate its sustainability. These three reports allow for measuring the financial ratios which supports to compare Costco with its competitors and also compare its past performance. Liquidity: It is used to evaluate whether the company can clear it’s debts within one year of turning it’s assets into cash.

    Read More

  • Robertwood Johnson University Hospital: Financial Analysis

    829 Words  | 4 Pages

    A Financial analysis determines how well an organization is performing financially and whether improvement is needed by reviewing the organization’s financial statements and calculating ratios. I have reviewed Robertwood Johnson University Hospital’s, Saint Peter’s Healthcare System’s (Saint Peter’s University Hospital), Catholic Health East’s (Saint Michael’s Medical Center) financial statements and determined the following calculated ratios. The current ratio using the balance sheet will determine whether Robertwood Johnson University Hospital’s, Saint Peter’s Healthcare Systems, (Saint Peter’s University Hospital), Catholic Health East’s

    Read More

  • J. C. Penney's Organizational Culture

    1033 Words  | 5 Pages

    1. Describe J.C; Penney 's culture before and during Johnson 's time in the organization. What were the attributes that Johnson changed, and how did this impact the culture and success of J.C. Penney? J.C. Penney’s culture was based on transparency and loyalty before the entry of Ron Johnson.

    Read More

  • Blaine Kitchenware: Case Study: Blaine Kitchenware Case

    921 Words  | 4 Pages

    Stock price remained constant at $16.25 and EPS, as noted before, increased from $0.91 to $1.04. PE, which is stock price divided by EPS, decreased from 17.89 to 15.62. This can be interpreted as investors are willing to pay less for Blaine. The final financial metric to look at is WACC. Before the debt leverage, Blaine’s WACC was only the cost of equity, as they had no debt.

    Read More

  • Essay On Pro Forma

    552 Words  | 3 Pages

    Public companies may quite appropriately wish to focus investors’ attention on critical components of quarterly or annual financial results in order to provide a meaningful comparison to results for the same period of prior years or to emphasize the results of core

    Read More

  • Johnson & Johnson Value Chain Analysis Summary

    942 Words  | 4 Pages

    Johnson & Johnson currently has a 10.4% market share of the Pharmaceutical Manufacturing industry. They have the second largest share of this industry, just behind Amgen at 10.9%. By looking at the revenue and operating income for Johnson & Johnson, we can see their margins and evaluate their performance. Johnson & Johnson’s operating profit margin improved from 2015 to 2016 but decreased significantly from 2016 to 2017. The operating profit margin for the company as a whole in 2016 was 28.72% and in 2017 it was 24.07% (Appendix A).

    Read More

  • Business Analysis: Costco's Business Strategy

    905 Words  | 4 Pages

    3.0 Concepts 3.1 Resources and Capabilities In order to achieve and sustain competitive advantage, a business needs both resources and capabilities. Resources are assets that are owned or employed by an organization. The organization utilizes and uses these assets to carry out their business operations. Resources can be grouped either tangible assets or intangible assets.

    Read More

  • Mcdonald's Strategy Analysis

    1601 Words  | 7 Pages

    McDonald’s is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. In 2014 IBISWorld market research estimated MCD held an 18.6 % of market share of the entire global fast food industry; Burger King in at just 4.6%. Under franchising visionary Ray Kroc, McDonald 's became the world 's premier food brand by selling the rights to operate a McDonald 's store. With this model, MCD keeps overhead costs down and lets local owners deal with individual units, while food costs remain low and service remains fast for a culture increasingly on the go.

    Read More

More about Comparative Analysis Of J. C. Penney's Corporation

Open Document