Comparative Analysis of Kohls Corporation and J.C. Penney Corporation
FI504 Comparative Analysis of Kohls Corporation and J.C. Penney Corporation
Your Course Project
Financial Statement Analysis Project -- A Comparative Analysis of Kohl’s Corporation and J.C. Penney Corporation
Below is the link for the financial statements for Kohl’s Corporation for the 2010 fiscal year ending January 29, 2011. Under the term Groupings Filter, change the term All Forms to Annual Filings using the drop-down arrow and press Search.
You should then scroll down and select the 10k dated 3/18/2011 and choose to download in Word or PDF format.
Below is the link for the financial statements for J.C. Penney Corporation for the 2010 fiscal year ending January 29, 2011. Under the term Groupings Filter, change the term All Forms to Annual Filings using the drop-down arrow and press Search.
You should then scroll down and select the 10k dated 3/29/2011 and choose to download in Word format.
A sample Project template is available for download in Doc Sharing. The sample project compares the ratio performance of Tootsie Roll and Hershey using the 2009 financial statements of Tootsie Roll and Hershey provided in Appendix A and Appendix B of your textbook.
This course contains a course project where you will be required to submit one draft of the Project at the end of Week 5 and the final completed Project at the end of Week 7. Using the financial statements for Kohl’s Corporation and J.C. Penney Corporation, respectively, you will calculate and compare the financial ratios listed further down this document for the fiscal year ending 2011 and prepare your comments about the liquidity, solvency and profitability of the two companies based on your ratio calculations. The entire project will be graded by the instructor at the end of the final submission in week 7 and one grade will be assigned for the entire project.
For the Final Submission:
Your final Excel workbook submission should contain the following. You cannot use any other software but Excel to complete this Project.
1) A completed worksheet title page tab which is really a cover sheet with your name, the course, the date, your instructor’s name and the title for the project.
2) A completed worksheet profiles tab which contains a one paragraph description regarding each company with information about their history, what products they sell, where they are located, etc.
3) All 18 ratios for each company with the supporting calculations and commentary on your worksheet ratio tab. Supporting calculations must be shown either as a formula or as text typed into a different cell. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios.
4) The Summary and Conclusions worksheet tab which is an overall comparison of how each company compares in terms of the major category of ratios (Liquidity, Profitability, and Solvency). A nice way to conclude is to state which company you think is the better investment and why.
5) The Bibliography worksheet tab must contain at least your textbook as a reference. Any other information you use to profile the companies should also be cited as a reference.
Required Ratios for Final Project Submission
1) Earnings per Share
2) Current Ratio
3) Gross Profit Rate
4) Profit Margin Ratio
5) Inventory Turnover Ratio
6) Days in Inventory
7) Receivables Turnover Ratio
8) Average Collection Period
9) Asset Turnover Ratio
10) Return on Assets Ratio
11) Debt to Total Assets Ratio
12) Times Interest Earned Ratio
13) Payout ratio
14) Return on Common Stockholders’ Equity Ratio
15) Free Cash Flow
16) Current Cash Debt Coverage Ratio
17) Cash Debt Coverage Ratio
18) Price/Earnings Ratio [For the purpose of this ratio, for both Kohl’s and J.C. Penney, use the market price per share on January 31, 2011]
You'll get 1 file (24.6KB)