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…show more content… Kolh's earning for every dollar invested by common stockholders is better by 6 cents as compared to JC Penney so Kohl's is more profitable based on this ratio.
Return on common stockholders' equity Net income - Preferred stock dividend 1,114,000 = 14.0% $38,900 = 7.6% Average common stockholders' equity 7,977,500.00 $511,900
Free cash flow Cash provided by operations minus capital expenditures minus cash dividends paid $915,000 = $915,000 ($96,000) $(96,000) Kohl's has $915M in free cash flow while JC Penney has -$96M based on the provided solution but $158M if based on the computation provided by the annual report. Regardless, Kohl's has the advantage on this particular ratio. =
Free cash flow Free cash flow per kohl's includes tax benefit from pension contribution, discretionaty cash pension contribution and proceeds from sale of assets on page 15 of the 10K report $915,000 = $915,000 $915,000 158000 Current cash debt coverage ratio Cash provided by operations $1,676,000 = 0.66 $592 = 0.20 Kohl's 66 cents in cash provided by operation in relation to average current liabilities is better than JC Penney's 20 cents so Kohl's is more liquid based on this liquidity ratio. Average current liabilities $2,550,000 $2,948
Cash debt coverage ratio Cash provided by operations $1,676,000 = 0.31 $592 = 0.08 Kolh's 31
