A Comparative Analysis of Kohl’s Corporation and J.C. penney(Graded A+) - use as a guide only - 19209

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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 shouldthen scroll down and select the 10k dated 3/18/2011and choose to download in Word or PDF format.

 

http://www.kohlscorporation.com/InvestorRelations/sec-filings.htm

 

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.

 

http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-sec

 

 

 

 

Description

 

 

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 documentfor the fiscal year ending 2011 and prepare your comments about the liquidity, solvency and profitability of the two companies based on your ratio calculations.

 

 

 

Overall Requirements

 

 

 For the Final Submission:

 

Your final Excel workbook submission should contain the following. You cannot use any other software but Excel to complete this assignment.

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]

The Excel files uploaded in the dropboxes should not include any unnecessary numbers or information (such as previous years' ratios, ratios that were not specifically asked for in the project, etc.).

 

For the Draft:

 

Create an Excel spreadsheet or use the Project template to show your computations for the first 12 ratios listed above. The more you can complete regarding the other requirements the closer you will be to completion when Week 7 arrives. Supporting calculations must be shown either as a formula or as text typed into a different cell. If you plan on creating your own spreadsheet, please follow the format provided in the Tootsie Roll and Hershey template file.

 

Please upload your draft submission to the Week 5Dropbox by the Sunday ending Week 5.

 

Other Helpful information:

 

If you feel uncomfortable with Excel, you can find many helpful references on Excel by performing a Google search.

 

The Appendix to Chapter 13 contains ratio calculations and comparison comments related to Kellogg and General Mills so you will likely find this information helpful.

 

BigCharts.com provides historical stock quotes.

 

Either APA or MLA style can be used to complete the references on your Bibliography tab. There is a tutorial for APA and MLA style within the syllabus.

 

 

 

Solution Description

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Attachments
KSS v JCP.xls
KSS v JCP.xls