Differentiate Balance Sheet and Income statement of 2 retail companies

I am going to compare JC Penny and Macy’s. If you are in USA probably you already know they are in retail business, although Macy’s has a way better balance sheet than JC Penny’s.

I got the data from MSN Money. To obtain Macy’s financial here at https://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.M.NYS

And for JC Penny’s financials can be found at https://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.JCP.NYS

 

I will attach a spreadsheet with information of Income Statement, Balance Sheet and cash flow for Macys and JC Pennys. Please check.

Now let us compare the important financial figures from these 2 companies –

From Income statement we can see – Macy has gross Revenue of 25778 and gross profit of 10157 while JC Penny’s gross revenue is 12547 and gross profit is 4476

 

From Balance sheet, we can see –

Macy has short-term or current asset worth of 7626 in form of inventories and cash. And total current liabilities or payments to be made within 1 year is worth 5647. Hence the current ratio is 7626 / 5647 =

 

For JC Penny the current asset is 4097 and that includes cash on balance sheet and inventories mainly. And the current liabilities is 2419. Hence the current ratio is 4097/2419 =

 

Macy has long-term asset worth of 1225 and long-term liabilities worth 9882

JC Penny has 5217 worth of long-term assets and 5541 worth of long-term liabilities

 

From the Cash flow statement, we can see Macy has added 188 worth cash end of the financial year but JC Penny has actually lost 13 from existing cash reserve.

 

All these figures are in Billions as provided in the MSN money.

 

 

 

 

One Comment

  1. Franklin September 6, 2018 Reply

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