Financial Accounting Acct: Kohl's And JC Penney

Lynn Christensen
Student #0409328077
Financial Accounting Acct. 504
Professor Joyce Stiles
Course Project - Kohl’s & JC Penney
Submitted: August , 2014

JC Penney’s: Since their founding by James Cash Penney in 1902, they have grown to be a major retailer, operating 1,106 department stores in 49 states and Puerto Rico, as of
January 29, 2011. J.C. Penney Corporation, Inc. was incorporated in Delaware in 1924 and J.C. Penney Company, Inc. was incorporated in Delaware in 2002, when the holding company structure was implemented. J.C. Penneys’ business consists of selling merchandise and services to consumers through their stores and internet at jcp.com.
They sell family apparel and footwear, accessories, fine and fashion jewelry, beauty
products
The company and its consolidated subsidiaries employes approximately 156,000 full-time and part-time associates as of January 29,
2011.

Kohl’s Corporation was organized in 1988 and is a Wisconsin corporation. They operate family-oriented department stores that sell moderately priced, apparel, footwear and accessories for women, men, and children; soft home products such as sheets and pillows; and housewares. As of Jamuary 29, 2011, they operated 1.089 stores in 49 states. In addition to their stores, Kohl’s offers on-line shopping on their website at www.Kohls.com. Their website offers a selection of items and categories beyond what is available in stores, with a primary focus on extended sizes, product line extensions, and web-exclusive product lines. As of January 29, 2011, the company employed approximately 136,000 associates, including approximately 29,000 full-time and 107,000 part-time associates.

Analyzed Company’s Profiles
The higher the number, the greater the return to the investors. Considering that Kohl’s and JC Penney have been very close up to this point, these figures show a significant advantage for stockholder’s of Kohl’s.

Dividend Yield is the ratio of dividends per share of stock to the stock’s market price per share. Tells the percentage of a stock’s market value that the company returns to stockholders as dividends. Unfortunately, there was no dividend per share available on
Yahoo Finance, and even the financials report a 0% of yield for Kohl’s. So I am not sure if the numbers were correct or just unavailable, but based on THIS information, JC Penney has a better yield of return to its’ investors.

Times-Interest-Earned Ratio relates income to interest expense. It measures the number of times operating income can cover interest expense. The higher the number, the better chance a company has of being able to cover interest expense. Based on the information, Kohl’s has a greater chance of covering their interest expense over JC