Title Comparing Kohl s and J C Penney Name Justin Noel Course ACCT 504 Acct Fin Managerial Use Anlys Professor University Kohl s Corporation is an American deparment store chain headquartered in the Milwakee suburb of Menomenee Falls Wisconsin operating as of September 2011 1 089 stores in 49 states In 1998 it entered the S P500 list and is also listed in the Fortune 500 135 in 2010 The chain was the 20th largest retailer in the United states in 2011 in terms of revenue Kohl s is the 4th largest US department store by sales below JC penny and above Nordstorm Maxwell Kohl who had previously operated traditional grocery stores built his first supermarkeet in 1946 the first in what would become a southeastern Wiscosin chain known as Kohl s Food Stores In 1962 he started his first department store Kohl s Department Store in Brookfield Wisconsin He positioned Kohl s between the higher end department stores and the discounters selling everything from candy to engine oil to sporting equipment J C Penney Company Inc known as JCPenney stylized as jcp and jcpenney and formerly known as Penney s is a chain of American mid range department stores based in Plano Texas The company operates 1 107 department stores in all 50 U S states and Puerto Rico and previously operated a catalog business and several discount outlets In addition to selling conventional merchandise JCPenney stores often house several leased departments such as Sephora Seattle best Coffee operation centers portrait and jewelry repair Most JCPenney stores are located in subarbhan Before 1966 most of its stores were located in downtown areas As shopping malls became more popular in the latter half of the 20th century JCPenney followed the trend by relocating and developing stores to anchor the malls In more recent years the chain has continued to follow consumer traffic echoing the retailing trend of opening some standalone stores including some next door to competitors Certain stores are located in power centers The company has been an Internet retailer since 1998 It has streamlined its catalog and distribution while undergoing renovation improvements at store level In 1962 J C Penney entered discount merchandising with the acquisition of General Merchandise Company which gave them The treasure stores These discount operations proved unsuccessful and were shuttered in 1981 In 1963 J C Penney issued its first catalog The company operated in store catalog desks in eight states The catalogs were distributed by the Milwaukee Catalog distribution center Kohl s Corporation is an American deparment store chain headquartered in the Milwakee suburb of Menomenee Falls Wisconsin operating as of September 2011 1 089 stores in 49 states In 1998 it entered the S P500 list and is also listed in the Fortune 500 135 in 2010 The chain was the 20th largest retailer in the United states in 2011 in terms of revenue Kohl s is the 4th largest US department store by sales below JC penny and Maxwell Kohl who had previously operated traditional grocery stores built his first supermarkeet in 1946 the first in what would become a southeastern Wiscosin chain known as Kohl s Food Stores In 1962 he started his first department store Kohl s Department Store in Brookfield Wisconsin He positioned Kohl s between the higher end department stores and the discounters selling everything from candy to engine oil to J C Penney Company Inc known as JCPenney stylized as jcp and jcpenney and formerly known as Penney s is a chain of American mid range department stores based in Plano Texas The company operates 1 107 department stores in all 50 U S states and Puerto Rico and previously operated a catalog business and several discount outlets In addition to selling conventional merchandise JCPenney stores often house several leased departments such as Sephora Seattle best Coffee operation centers portrait and jewelry repair Most JCPenney stores are located in subarbhan Before 1966 most of its stores were located in downtown areas As shopping malls became more popular in the latter half of the 20th century JCPenney followed the trend by relocating and developing stores to anchor the malls In more recent years the chain has continued to follow consumer traffic echoing the retailing trend of opening some standalone stores including some next door to competitors Certain stores are located in power centers The company has been an Internet retailer since 1998 It has streamlined its catalog and distribution while undergoing In 1962 J C Penney entered discount merchandising with the acquisition of General Merchandise Company which gave them The treasure stores These discount operations proved unsuccessful and were shuttered in 1981 In 1963 J C Penney issued its first catalog The company operated in store catalog desks in eight states The catalogs were distributed by the Milwaukee Catalog distribution center Earnings per share Current ratio Gross Profit Ratio Profit margin ratio Inventory Turnover Days in Inventory Receivable Turnover Ratio Average Collection Period Assets Turnover Ratio Return on Assets Ratio Debt to Total Assets Ratio Times Interest Earned Ratio Payout ratio Free cash flow Return on Common Stockholders Equity Current cash debt coverage ratio Cash debt coverage ratio Price Earnings ratio Kohl s As given in the income statement 3 65 Current assets Current liabilities 5 645 2 710 2 08 Gross profit Net Sales Net Income Net Sales 7 032 18 391 1 114 18 391 38 2 6 1 Cost of Goods Sold Average Inventory 11 359 2 980 3 8 365 days Inventory turnover 365 3 8 96 days Net credit sales Average Net Receivables 18 391 75 245 365 Receivable Turnover Ratio 365 245 0 1 5 Net Sales Average Total Assets 18 391 14 849 Net Income Average Total Assets 1 114 14 849 1 24 7 5 Total Liabilities Total Assets 6 999 14 849 47 1 Net Income Int Expense Tax Expense 1114 141 668 13 6 Interest Expense 141 Cash dividend declared on common stock 0 0 Net income 0 1 114 Net income Preferred stock dividend Average common stockholders equity 1 114 7 977 00 14 0 Cash provided by operations minus capital expenditures minus cash dividends paid 915 000 915 000 Cash provided by operations Average current liabilities Cash provided by operations Average total liabilities 1 676 2 500 1 676 5 384 0 67 0 31 Market price as of 12 31 2010 EPS as of 12 31 2010 51 20 3 65 14 Interpretation and Comparison between the two companies ratios Reading the Appendix of Chapter 13 will help you prepare the commentary Kohls is