Which company appears more profitable

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Kohl Corporation is a national retail department store. The company 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: 

Required: 

1. Which company appears more profitable? Describe the ratio(s) that you used to reach this decision. 

2. Which company appears more liquid? Describe the ratio(s) that you used to reach this decision. 

3. Which company appears more solvent? Describe the ratio(s) that you used to reach this decision. 

4. Are the conclusions from your analyses in requirements 1 and 3 consistent with the value of the two companies, as suggested by their P/ E ratios? If not, offer one explanation for any apparent inconsistency.

Reference no: EM13865872

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