| JC penny ratio analysis and Target Corp ratio analysis |
| Ratio | Formula | JC penny 2011 | JC penny 2012 | JC penny 2013 | JC penny 2014 | Target Corp 2011 | Target Corp 2012 | Target Corp 2013 | Target Corp 2014 |
| profit margin | net income/revenue*100% | 389/17759*100%=2.19% | (-152)/17260*100%=-0.88% | (-985)/12985*100%=-7.59% | (-1388)/11859*100%=-11.7% | 2920/65786*100%=4.44% | 2929/68466*100%=4.28% | 2999/71960*100%=4.17% | 1971/72596*100%=2.72% |
| return on assets | annual net income/average total assets | 389/13068*100%=2.98% | (-152)/(13068+11424)/2*100%=-1.24% | (-985)/(11424+9781)/2*100%=-9.29% | (-1388)/(9781+11801)/2*100%=-12.86% | 2920/43705*100%=6.68% | 2929/(43705+46630)/2*100%=6.48% | 2999/(46630+48163)/2*100%=6.33% | 1971/(44553+48163)/2*100%=4.25% |
| return on equity | annual net income/average equity | 389/5460*100%=7.12% | (-152)/(5460+4010)/2*100%=3.21% | (-985)/(4010+3171)/2*100%=-27.43% | (-1388)/(3171+3087)/2*100%=-44.36% | 2920/15487*100%=18.85% | 2929/15821*100%=18.51% | 2999/16558*100%=18.11% | 1971/16231*100%=12.14% |
| receivable turnover | revenue/average receivables | 17759/334=53.17 times | 17260/(334+168)/2=68.76 times | 12985/(168+57)/2=115.42 times | 11859/(57+4)/2=388.82 times | 65786/7075=9.30 times | 68466/(1003+7075)/2=16.95 times | 71960/(1099+1003)/2=68.47 times | 72596/(1347+1099)/2=59.36 times |
| average collection period | average receivables/revenue*365 days | 1334/17759*365=27.42 days | (334+168)/2/17260*365=5.31 days | (168+57)/2/12985*365=3.16 days | (57+4)/11859*365=0.93 days | 7075/65786*365=39.25 days | (7075+1003)/2/68466*365=21.53 days | (1003+1099)/2/71960*365=5.33 days | (1099+1347)/2/72596*365=6.14 days |
| inventory turnover | cost of sales/average inventory | 10799/3213=3.36 times | 11042/(3213+2916)/2=3.60 times | 8919/(2916+2341)/2=3.39 times | 8367/(2341+2935)/2=3.17 times | 45725/7596=6.02 times | 47860/(7596+7918)/2=6.17 times | 50568/(7918+7903)/2=6.39 times | 51168/(7903+8766)/2=6.14 times |
| fixed asset turnover | revenue/average fixed assets | 17759/6698=2.65 times | 17260/(6698+6345)/2=2.65 times | 12985/(6343+6098)/2=2.09 times | 11859/(6098+6968)/2=1.82 times | 65786/26492=2.48 times | 68466/(26492+30181)/2=2.42 times | 71960/(30181+17510)/2=3.02 times | 72596/(17510+13175)/2=4.73 times |
| total assets turnover | revenue/average total assets | 17759/13068=1.36 times | 17260/(13068+11424)/2=1.41 times | 12985/(11424+9781)/2=1.22 times | 11859/(9781+11801)/2=1.10 times | 65786/43705=1.51 times | 68466/(43705+46630)/2=1.52 times | 71960/(46630+48163)/2=1.52 times | 72596/(48163+44153)/2=1.57 times |
| quick ratio | (current assets-inventory-prepayment)/current liabilites | (6370-3213-75)/2647=1.16:1 | (5081-2916-245)/2756=0.70:1 | (3683-2341-249)/2568=0.43:1 | (4803-2935-186)/2846=0.59:1 | (17213-7596)/10070=0.96:1 | (16449-7918-206)/14287=0.58:1 | (16388-7903-310)/14031=0.58:1 | (11573-8766-272)=0.20:1 |
| debt total assets | total debt/total assets*100% | 7608/13068*100%=58.22% | 7414/11424*100%=64.90% | 6610/9781*100%=67.58% | 8714/11801*100%=73.84% | 28218/43705*100%=64.56% | 30809/46630*100%=66.07% | 31605/48164*100%=65.62% | 28322/44553*100%=63.57% |
| times interest earned | operating income/interest | 836/231=3.62 times | 478/227=2.11 times | (-1340)/226=-3.79 times | (-1334)/352=-3.79 times | 5252/757=6.94 times | 5365/779=6.89 times | 5408/762=7.10 times | 4304/681=6.32 times |
| fixed charge ratio | (operating income+fixed charges)/(interest + fixed charges) | 836/231=3.62 times | 478/227=2.11 times | (-1340)/226=-3.79 times | (-1334)/352=-3.79 times | 5252/757=6.94 times | 5365/779=6.89 times | 5408/762=7.10 times | 4304/681=6.32 times |
| current ratio | current assets/current liabilities | 6370/2647=2.41:1 | 5081/2756=1.84:1 | 3683/2568=1.43:1 | 4833/2846=1.70:1 | 17213/10070=1.71:1 | 16449/14287=1.15:1 | 16388/14031=1.17:1 | 11573/12777=0.91:1 |
Sjectladymac
weeek_5_project.xlsx
