JCP  J.C. Penney Company Inc.

Exchange

NYSE

Sector

Consumer Services

Industry

Department/Specialty Retail Stores

Market Cap.

2.225B

Weak Balance Sheet

JCP's financial position is not ideal. The key is to check whether JCP is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in January
2005200620072008200920102011201220132014
Cash 4.69B 3.02B 2.75B 2.47B 2.35B 3.01B 2.62B 1.51B 930.00M 1.52B
Current Assets 8.43B 6.70B 6.65B 6.75B 6.22B 6.65B 6.37B 5.08B 3.68B 4.83B
Total Assets 14.13B 12.46B 12.67B 14.31B 12.01B 12.58B 13.04B 11.42B 9.78B 11.80B
Current Liabilities 3.45B 2.76B 3.49B 3.34B 2.79B 3.25B 2.65B 2.76B 2.58B 2.85B
Total Liabilities 9.27B 8.45B 8.39B 9.00B 7.86B 7.80B 7.58B 7.41B 6.61B 8.71B
Stockholder' Equity 4.86B 4.01B 4.29B 5.31B 4.16B 4.78B 5.46B 4.01B 3.17B 3.09B
Current Ratio 2.44 2.43 1.90 2.02 2.23 2.05 2.41 1.84 1.43 1.70
TL-to-TA 0.66 0.68 0.66 0.63 0.65 0.62 0.58 0.65 0.68 0.74

Low or No Reinvestment of Profits over the past 10 years

JCP has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to JCP operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in January
2005200620072008200920102011201220132014
Retained Earnings 812.00M 512.00M 922.00M 1.54B 1.96B 2.02B 2.22B 1.41B 380.00M -1.01B
Retained Earnings Growth - -36.95% 80.08% 67.03% 27.21% 3.27% 9.84% -36.45% -73.09% -365.26%