Kohl's J. C. Penney Interpretation And Comparison Of Financials

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Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab and also include your commentary.
The financial statements used to calculate these ratios are available in Appendix A and Appendix B of your textbook. Kohl’s J.C. Penney Interpretation and Comparison between the two companies' ratios (Reading the Appendix of Chapter 13 will help you prepare the commentary) Earnings per share As given in the income statement $3.67 Basic 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.
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JC Penne has a higher rate and Kohl's has zero because they didn't declared any dividends. Net income $1,114 $389 Return on Common Stockholders' Equity Net income - Preferred stock dividend 1,114 = 14.0% $389 = 7.6% This ratio shows how many dollars of net income the company earned for each dollar invested by the owners. Kohl's has a better advantage in this profitibility ratio. Average common stockholders' equity 7,977.50 $5,119

Free cash flow Cash provided by operations minus capital expenditures minus cash dividends paid $915 = $915 $(96.00) = $(96.00) In this measure of solvency, Kohl's has 915 million in cash remaining from operating activities after adjusting for capital expenditures and dividends paid. But JC Penne has a negative blance of 96 million.

Current cash debt coverage ratio Cash provided by operations $1,676 = 0.66 $592 = 0.20 This is the ratio of cash provided by operating activities to average current liabilities. Kohl's has better ratio than JC Penne. Average current liabilities $2,550 $2,948

Cash debt coverage ratio Cash provided by operations $1,676 = 0.31 $592 = 0.08 This is a cash-basis measure of solvency. This ratio indicates a company’s ability to repay its liabilities from cash generated from operating activities