Course Project 2 Assignment Comparing Kohl s and J C Penney Justin Noel Acct Fin Managerial Use Anlys Professor 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 penney 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 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 penney 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 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 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 Ratios Formula Kohl s Earnings per share As given in the income statement Current ratio Current assets Current liabilities 5 645 2 710 Gross Profit Ratio Profit margin ratio Gross profit Net Sales Net Income Net Sales Inventory Turnover Days in Inventory Cost of Goods Sold Average Inventory 365 days Inventory turnover 7 032 18 391 1 114 18 391 11 359 2 980 365 3 8 Receivable Turnover Ratio Net credit sales Average Net Receivables 18 391 75 Average Collection Period 365 Receivable Turnover Ratio 365 245 0 Assets Turnover Ratio Net Sales Average Total Assets 18 391 14 849 Return on Assets Ratio Net Income Average Total Assets 1 114 14 849 Debt to Total Assets Ratio Total Liabilities Total Assets 6 999 14 849 Times Interest Earned Ratio Net Income Int Expense Tax Expense 1114 141 668 Interest Expense 141 Payout ratio Cash dividend declared on common stock Net income 0 1 114 Return on Common Stockholders Net income Preferred stock dividend Average common stockholders equity 1 114 7 977 00 Free cash flow Cash provided by operations minus capital expenditures minus cash dividends paid 915 000 Current cash debt coverage ratio Cash provided by operations 1 676 Average current liabilities 2 500 Cash debt coverage ratio Cash provided by operations Average total liabilities 1 676 5 384 Price Earnings ratio Market price as of 12 31 2010 EPS as of 12 31 2010 51 20 3 65 Kohl s J C Penney 3 65 Basic Common 1 60 2 08 6 370 00 2 647 00 2 41 38 2 6 1 6 960 17 759 389 17 759 3 8 10 799 3 118 96 days 365 3 5 39 2 2 2 3 5 105 Not Applicable Not Applicable 245 1 5 1 24 1 39 17 759 12 811 7 5 3 0 378 12 811 47 1 58 1 7 582 13 042