Title: An empirical investigation of alarming indicators of US retail giant

Authors: Reena Agrawal; Rohit Raj; Vimal Kumar; Ajay Jha

Addresses: Department of Finance and Accounting, Jaipuria Institute of Management, Lucknow, 226010, India ' Department of Information Management, Chaoyang University of Technology, Taichung 413310, Taiwan ' Department of Information Management, Chaoyang University of Technology, Taichung 413310, Taiwan ' Department of Operations Management, Jaipuria Institute of Management, Lucknow-226010, India

Abstract: This is an empirical investigation done to explore the alarming indicators that were left unrestricted and uncontrolled by J.C. Penney Company Inc. (JCPI). This research was performed using secondary data available in the annual reports of J.C. Penney Company Inc. from 2011 until 2020. The financial statements were analysed using vertical analysis (VA), horizontal analysis (HA), ratio analysis, and trend analysis (TA). This study has recognised a total of 12 alarming indicators that were left unmonitored by the company and it is evident that the COVID-19 pandemic only aggravated the ongoing problems and mandated J.C. Penney Company Inc. to recourse. The identified indicators provide information about the company's deteriorating financial situation over time. The precise information, including the decline in net sales, net income, cash on hand, and short-term investments, paints a clear picture of the financial difficulties the company was experiencing. Significant worries about dropping shareholder equity, falling sales, the loss of fixed assets, and rises in long-term debt are also highlighted by the study of a few items from the trend analysis. The JC Penney Company Inc. appears to have faced fierce competition from rivals who may have excelled in product selection, quality, advertising, resource management, technological updates, in-store services, and the inability to provide individualised customer experiences.

Keywords: financial statement analysis; financial distress; bankruptcy.

DOI: 10.1504/IJKMTH.2024.140617

International Journal of Knowledge Management in Tourism and Hospitality, 2024 Vol.3 No.4, pp.267 - 291

Received: 18 Aug 2023
Accepted: 22 Aug 2023
Published online: 28 Aug 2024 *

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