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 is considered the most important variable in determining a share’s price. EPS indicate whether a company is profitable. To calculate EPS, take the Net Income and subtract by the Dividends on Preferred Stock, then divide by the Average Outstanding Share. In 2012, J.C. Penney’s Net Income is currently -152 million, the Dividend of Stock is 0, and the Outstanding Share is 217.4 million – The EPS is -0.70. In 2011, the Net Income was 378 million, Dividend of Stock was 0, and Outstanding Share was 236 million – the EPS was 1.65. In 2010, the Net Income was 249 million, Dividend of Stock was 0, and Outstanding Share was

Running head: Financial Analysis 6

232 million – the EPS was 1.08. In 2009, the Net Income was 567 million, the Dividend of Stock was 0, and the Outstanding Share was 222 million – the EPS was 2.58. In 2008, the Net Income was 1.11 billion, the Dividend of Stock was 0, and Outstanding Share was 223 million – the EPS was 4.99. In 2012, Target’s Net Income is currently 2.93 billion, Dividend of Stock is 0, and Outstanding Share is 679.1 million – the EPS is 4.31. In 2011, the Net Income was 2.92 billion, the Dividend of Stock was 0, and Outstanding Share was 723.6 million – the ESP was 4.03. In 2010, the Net Income was 2.49 billion, Dividend of Stock was 0,