Below is the instructions on where to obtain the numbers for the following ratio
ID: 2469351 • Letter: B
Question
Below is the instructions on where to obtain the numbers for the following ratios. I know I have some of them right, as I have worked them with my Professor. But I am having trouble with the following.
Inventory Turnover - COGS/Average Inventory (Professor said is should be 3.8 for Kohl's and 3.5 for JC Penny)
Day's Inventory Outstanding - 365 days/Inventory Turnover (Professor said is should be 96 days for Kohls and 105 days for JC Penny)
Asset Turnover - Net Sales/Average Total Assets (Professor said it should be 1.38 Kohls and 1.39 JC Penny
He said my ROA ratio was correct, I got 6.1 times and 81.6 times However he put 8.3 and 3.0 as the correct answers
I also need
Debt Ratio - Total Liabilities/Total Assets
Times Interest Earned Ratio - Net Income + Int Expense + Tax Expense/Interest Expense
Dividend Yield - Divend end per share of common stock (Yahoo FInance 11/1/2013)/Market price per share of common stock (yahoo financie 11/1/2013)
ROE - Net income - Preferred dividend/Average common stockholders equity
Free Cash flow - Net cash provided by operating activities minus cash payments earmarked for investments in plant assets
Price Earnings Ratio
Below is the link for the financial statements for Kohl’s Corporation for the 2010 fiscal year ending January 29, 2011. Under the term Groupings Filter, change the term All Forms to Annual Filings using the drop-down arrow and press Search.
You should then scroll down and select the 10k dated 3/18/2011 and choose to download in Word or PDF format.http://www.kohlscorporation.com/InvestorRelations/sec-filings.htmBelow is the link for the financial statements for J.C. Penney Corporation for the 2010 fiscal year ending January 29, 2011. Under the term Groupings Filter, change the term All Forms to Annual Filings using the drop-down arrow and press Search.You should then scroll down and select the 10k dated 3/29/2011 and choose to download in Word format.
http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-sec
Explanation / Answer
Inventory turnover ratio = COGS/Average inventory
Average inventory =3036+2923/2
=2,,979.5.
COGS =11,359/2979.5
=3.81 times.
Days inventory outstainding =365/Inventory turnover ratio
=365/3.81
=95.74 rounded to 96 days.
Asset turnover ratio:
Net sales/Average total assets
Net sales =18,391
Average total assets =$13,564+$13,160/2
=$13,362.
Asset turnover ratio = 18,391/13,362
=1.376 rounnded to 1.38
ROA = Net profit/Average total assets
Net profit =1,114.
Average total assets =$13,564+$13,160/2
=$13,362.
ROA =$1,114/$13,362.
=8.3%.
J.C.Penny:
Inventory turnover ratio = COGS/Average inventory
Average inventory =3213+3024/2
=3,118.5
COGS = 10799/3118.5
=3.46 times.
Days inventory outstainding =365/Inventory turnover ratio
=365/3.46
=105.4 rounded to 105 days.
Asset turnover ratio:
Net sales/Average total assets
Net sales =$17,759
Average total assets =$13,042+$12581/2
=$12,811.5
Asset turnover ratio = 18,391/$12,811.5
=1.44 rounnded to 1.4
ROA = Net profit/Average total assets
Net profit =389
Average total assets =$13,042+$12581/2
=$12,811.5
ROA =389/12811.5
=3.04%
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