FNAN 300
BUSINESS FINANCE
SPRING 2021
FINANCIAL STATEMENT ANALYSIS PROJECT
(DUE BY 11:00PM ON SUNDAY, APRIL 18TH, 2021 IN MOODLE)
This project is worth 10 % of the total grade.
TJMaxx (TJX), Inc and Nordstrom, Inc are the two companies in the same industry. Please use the financial ratio analysis that you have learned from the course to compare these two companies. Please submit all the work in a Word document and/or Excel Spreadsheet in Moodle.
(Note: please make sure to show all the details and calculations to earn full credits)
NO LATE SUBMISSION IS ACCEPTED.
HINTS: Since the depreciation is not given, students are not responsible for the cash coverage ratio. However, they are responsible for the rest of ratios which are specified on the table 3-5 of chapter 3.
The market value can be found here TJX Companies, Inc. (The) (TJX) Stock Price, News, Quote & History - Yahoo Finance (example of TJX). The cu
ent stock price per share is the big number on the top. It fluctuates all the time, so you can choose it at any time.
Categories
Formula
Calculations
TJMaxx
Calculations
Nordstrom
1) Short-term Solvency or Liquidity
Cu
ent Ratio
1.24
0.92
Quick Ratio
0.56
0.37
Cash Ratio
0.45
0.24
2) Long-term Solvency or Liquidity
Total Debt Ratio
0.75
0.90
Debt-Equity Ratio
3
9
Equity Multiplie
4
10
Times Interest Earned Ratio
440.48
3) Asset Utilization or Turnover:
Inventory Turnove
6.13
5.17
Days’ sales in inventory
59.54
70.60
Receivables Turnove
108.00
84.54
Payables Turnove
11.17
6.30
Days’ Sales in Receivables
3.38
4.32
Categories
Formula
Calculations
TJMaxx
Calculations
Nordstrom
Days’ Cost in Payables
32.68
57.94
Total Assets Turnove
1.73
1.55
Capital Intensity
or
0.58
0.64
4) Profitability Ratios:
Profit Margins
7.84%
3.28%
ROA
13.55%
20.08%
ROE
55.01%
1545.66%
5) Market Value Ratios
Price-earning Ratio
0.00
0.98
Price-sales Ratio
0.00
0.06
Market-Book Ratio
0.00
1
Earnings Per Share
Given
2.71
Given
3.20
Price Per Share
0.00
3.13
Sales Per Share
17.13
49.87
Book Value Per Share
2.44
3.14
Market Value per share
Price-earnings * EPS
0.00
0.98 * 3.20
3.14
Categories
1) Short-term Solvency or Liquidity
Cu
ent Ratio
Quick Ratio
Cash Ratio
2) Long-term Solvency or Liquidity
Total Debt Ratio
Debt-Equity Ratio
Equity Multiplie
Times Interest Earned Ratio
3) Asset Utilization or Turnover:
Inventory Turnove
Days’ sales in inventory
Receivables Turnove
Payables Turnove
Days’ Sales in Receivables
Days’ Cost in Payables
Total Assets Turnove
Capital Intensity
4) Profitability Ratios:
Profit Margins
ROA
ROE
5) Market Value Ratios
Price-earning Ratio
Price-sales Ratio
Market-Book Ratio
Earnings Per Share
Price Per Share
Sales Per Share
Book Value Per Share
Market Value per share