Financial and Operational Analysis

Assignment Description

Prepare the financial ratios for J.C. Penney Company, Inc. (JCP) for the years indicated. Calculate the required financial ratios and reference them in your analysis. Including the following:

•Prepare the financial ratios for the calendar years of 2011, 2012, and 2013. Use the JCP financial documents (balance sheets and income statements) linked in the Resources.

•Comment on the differences between J.C. Penney’s ratios and the industry averages.

•Determine the trends evident in the financial statements.

Write a three-page memo divided into the following sections:

•Liquidity.

•Asset management.

•Long-term debt-paying ability.

•Profitability.

Describe the financial problems J.C. Penney currently faces in each area. Determine possible causes of each problem. Propose actions that J.C. Penney should take to prevent further financial losses. Analyze the importance of using these financial ratios and statements to plan actions that would address potential problems.

Your paper should follow a logical structure and be evidence based. Use the MEAL Plan structure (see Resources) to help guide the organization of your paper.

•Main ideas: Present the main points or ideas that you are making in this paper.

•Evidence: Give us a reason to believe you. Support your reasons with evidence. Acknowledge other view points and respond to them (Booth, Colomb, & Williams, 2009).

•Analysis: Identify the component parts of the articles cited. Identify patterns or themes in the articles reviewed. Use data and information from others to support your main points and ideas.

•Link: Synthesize what you have learned. Integrate and combine ideas from your source articles into a new whole containing your own ideas.