Acct. final presentation

Presented by

Mindy WilliamsAndrew Blackman

Colorado Technical University

December 15, 2014

THE INVESTOR’S GUIDE:

KOHL'S AND JC PENNEY

The Investors Guide

Table of Contents

-Financial and operational development

-Brief background and standards income statement

-Overview of research found

-Financial analysis

-Analyst conclusions

• One of the original stores was dry goods store in

Colorado by the name of 'The Golden Rule Store'.

• Founded in Kemmerer, Wyoming in 1902.

• James Cash Penney, Co- founder.

• Moderately priced, quality apparel for middle-

income families.

• The first Kohl's department store opened in

Brookfield, Wisconsin, in 1962 as an offshoot of

the Kohl's grocery chain, which had been

founded in Milwaukee in the late 1920s by Max

Kohl

• convenient layouts, clear signage, and

centralized checkouts would encourage high

store productivity.

Trend analysis

Common size income statement

Kohl's JC Penney

155%

160%

165%

170%

175%

180%

185%

190%

195%

Shows financial

strength or

weakness for a

company to

develop.

CR=TCA/TCL

• This demonstrates

if a company can’t

sell any long term

assets to cover it’s

current liabilities,

the firm can’t pay

short term

obligations (loans).

193%

170%

Current ratio

Return on as-sets

Return on

equity

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Kohls

Jcpenney

Return on Assets & Equity

• Demonstrates how a company can use investment funds to generate earnings growth.

• Return on assets

Kohl’s 6%

JCP -13%

• Return on equity

Kohl’s 15%

JCP -28%

-15%

-10%

-5%

0%

5%

10%

Kohls JC Penney

• Revenue leftover

after variable

costs of

production, such

as wages, are

paid.

• Kohl's 9%

• Jcpenney -11%

Operating margin

KOHL'S BASED OFF THE TRENDS FROM BOTH

COMPANIES, KOHL’S IS THE MOST VIABLE INVESTMENT.

• Sound marketing and

advertising

techniques.

• Steady cash flow and

maintaining short

term liabilities.

Jcpenney

• Once known for great

customer service and

brand popularity was

keeping the company

open.

• CEO Ron Johnson's

invested on marketing

promotions that makes the

products cheap and

unorganized. • Pricing confusion.

Questions or Concerns?