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Perform a ratio analysis: Also, here's the link to the source of the financial statements: http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-sec Ratio Comment Formula Answer EPS Stop! You don't need
Perform a ratio analysis:
Also, here's the link to the source of the financial statements: | |||||
http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-sec | |||||
Ratio | Comment | Formula | Answer | ||
EPS | Stop! You don't need to compute | ||||
this because every company is | |||||
required to publish it on their | |||||
income statement. | |||||
Price-earnings ratio | Google the company's price | = | = | ||
on the date you compute these | |||||
ratios. | |||||
Dividend payout ratio | Dividends may be found in the | = | = | ||
footnotes in the Annual Report/ | |||||
10k, or Google them for the year. | |||||
Dividend yield ratio | = | = | |||
Return on total assets | The tax rate may be approximated | = | = | ||
by dividing the total tax expense by | |||||
the income before taxes. | |||||
Average assets = (total assets from last | |||||
year's balance sheet + total assets from this | |||||
year's balance sheet)/2. | |||||
Return on stockholders' equity | Average equity = (total equity from last | = | = | ||
year's balance sheet + total equity from this | |||||
year's balance sheet)/2. | |||||
Working capital | = | = | |||
Current ratio | = | = | |||
Acid test ratio | = | = | |||
A/R turnover | Average A/R = (A/R from last | = | = | ||
year's balance sheet +A/R from this | |||||
year's balance sheet)/2. | |||||
Inventory turnover | Average inventory= (inventory from last | = | = | ||
year's balance sheet +inventory from this | |||||
year's balance sheet)/2. | |||||
Times interest earned | = | = | |||
Debt to equity | = | = |
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