Financial Statement Analysis

Basically, these ratios tell a lot about the two companies. It takes half a second to realize that Kohl's is the better investment, since JCP is losing money in heroic fashion. JC Penney not only lost a lot of money last year, but has lost money for the past three years. Its revenues are down substantially in that time, with a collapse in 2013. A quick Google search tells all about the massive marketing missteps that have crippled JC Penney. The stock price is low, but that is because this is not a growth story.

The current ratio highlights the liquidity of the company, and both are well above the 1.0 threshold normally considered a sign of trouble. While Kohl's earns a better profit margin, both companies have a health gross margin. The issue over at Penney is that its net margin is a staggering loss. To...
[ View Full Essay]