Kohl\'s Corporation is a national retail department store. The company\'s total
ID: 2587132 • Letter: K
Question
Kohl's Corporation is a national retail department store. The company's total revenues for the year ended February 1, 2014, were $19 billion. Macy's is a larger department store company with $28 billion of revenues. The following ratios for the two companies were obtained for the 2013-14 fiscal year: Ratio Gross profit percentage Net profit margin Return on equity EPS Inventory turnover ratio Current ratio Debt to assets P/E ratio Kohl's Macy's 40.1% 36.5 % 5.3 % 4.7 % 24.18 % 14.78 % $ 3.90 $ 4.05 3.17 1.93 0.34 15.2 14.0 2.87 1.52 0.33 Required 1. Which company appears more profitable? 0 Kohl's O Macy's 2. Which company appears more liquid? 0 Kohl's O Macy's 3. Which company appears more so lvent? 0 Kohl's O Macy'sExplanation / Answer
Answer ( 1 )
Kohi corporation appears more profitable because gross profit percentage and net profit margin of kohi is more than the Macy.
Answer ( 2 )
Liquid ratio is determined by the current ratio which is more in Macy than kohi. So Macy is more liquid.
Answer ( 3 )
Solvency is determined by the debt to equity ratio, the less the ratio has more assets to pay debt. So kohi is more solvent than Macy. Because kohi has less debt equity ratio
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