Financial Analysis for J.C Penney and Target Essay

1384 WordsSep 10, 20126 Pages
Running head: Financial Analysis 1 Financial Analysis for J.C. Penney and Target Sabrina Earnest Columbia College Author Note This paper was prepared for Business Finance 350, taught by Professor Campbell. Running head: Financial Analysis 2 Abstract Running head: Financial Analysis 3 Working Capital Ratio Working capital is the measure of a company’s efficiency and operating liquidity. The working capital is usually calculated by…show more content…
It subtracts inventories from current assets before dividing that number into liabilities. Quick ratios show how well current liabilities are covered by cash and by items with a ready cash value. To find the Quick Ratio, find the Current Assets, Inventory, and Current Liabilities Running head: Financial Analysis 5 on a balance sheet. Next, subtract your Current Assets from Inventory (Current Assets – Inventory) then divide by Current Liabilities. The higher the quick ratio is the better position that the company is in. In the past five years, the Quick Ratio for J.C. Penney has been: In 2012, the Quick Ratio so far is 0.7. In 2011, the Quick Ratio was 1.1. In 2010, the Quick Ratio was 1.1. In 2009, the Quick Ratio was 1.0. In 2008, the Quick Ratio was 0.9. In the past five years, the Quick Ratio for Target Corporation has been: In 2012, the Quick Ratio so far is 0.5. In 2011, the Quick Ratio was 0.9. In 2010, the Quick Ratio was 0.9. In 2009, the Quick Ratio was 1.0. In 2008, the Quick Ratio was 1.0. This information for J.C. Penney and Target’s Quick Ratio tells me that this current year has been the lowest for both companies. For J.C. Penney, in 2008 through 2011 the Quick Ratio was continually getting higher until in fell off this year. Target’s

More about Financial Analysis for J.C Penney and Target Essay

Open Document