Act504

Ratios

Formula

Earnings per share

As given in the income statement

Current ratio

Current assets Current liabilities

Gross Profit Ratio

Gross profit Net Sales

Profit margin ratio

Net Income Net Sales

Inventory Turnover

Cost of Goods Sold Average Inventory

Days in Inventory

365 days Inventory turnover

Receivable Turnover Ratio

Net credit sales Average Net Receivables

Average Collection Period

365 Receivable Turnover Ratio

Assets Turnover Ratio

Net Sales Average Total Assets

Return on Assets Ratio

Net Income Average Total Assets

Debt to Total Assets Ratio

Total Liabilities Total Assets

Times Interest Earned Ratio Net Income + Int Expense + Tax Expense Interest Expense

Payout ratio

Cash dividend declared on common stock Net income

Return on Common Stockholders'income - Preferred stock dividend Net Equity Average common stockholders' equity

Free cash flow

Cash provided by operations minus capital expenditures minus cash dividends paid

Current cash debt coverage ratio Cash provided by operations Average current liabilities

Cash debt coverage ratio

Cash provided by operations Average total liabilities

Price/Earnings ratio

Market price as of 12/31/2010 EPS as of 12/31/2010

Kohl’s

J.C. Penney

$3. 65

Basic Common =

$1.60

$5,645 $2,710

=

2.08

$ $

6,370.00 = 2,647.00

2.41

$7,032 $18,391

=

38.2%

$6,960 $17,759

=

39.2%

$1,114 $18,391

=

6.1%

$389 $17,759

=

2.2%

$11,359 $2,980

3.8

$10,799 $3,118

=

3.5

365 3.8

96 days

365 3.5

=

105

Not Applicable

$18,391 $75

=

245

Not Applicable 365 245.0 = 1.5

$18,391 $14,849

=

1.24

$17,759 $12,811

=

1.39

$1,114 $14,849

=

7.5%

$378 $12,811

=

3.0%

$6,999 $14,849

=

47.1%

$7,582 $13,042

=

58.1%

1114+141+668 $141

13.6

389+203+231 231

=

3.0

$0 $1,114

=

0.0%...