J Jill Story

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JILL -- USA Stock  

USD 6.50  2.33  55.88%

J Jill Inc is scheduled to announce its earnings today. The stock just had it stock split. J Jill has reported 1 for 5 split on 10th of November 2020. As many of us are excited about consumer cyclical space, it is fair to summarize J Jill Inc as a unique alternative. We will analyze why J Jill investors may still consider a stake in the business.
Published over a month ago
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Will new J Jill (NYSE:JILL) debt levels change in two weeks?
The entity currently holds 492.64 M in liabilities. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. J Jill has an asset utilization ratio of 101.82 percent. This denotes that the company is making $1.02 for each dollar of assets. An increasing asset utilization means that J Jill Inc is more efficient with each dollar of assets it utilizes for everyday operations. The company has Profit Margin (PM) of (24.24) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (10.15) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.1.
J Jill financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of J Jill, including all of J Jill's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of J Jill assets, the company is considered highly leveraged. Understanding the composition and structure of overall J Jill debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding J Jill Total Liabilities

J Jill Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. J Jill Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on J Jill balance sheet include debt obligations and money owed to different J Jill vendors, workers, and loan providers. Below is the chart of J Jill short long-term liabilities accounts currently reported on its balance sheet.
You can use J Jill Inc financial leverage analysis tool to get a better grip on understanding its financial position

How important is J Jill's Liquidity

J Jill financial leverage refers to using borrowed capital as a funding source to finance J Jill Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. J Jill financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between J Jill's total debt and its cash.

An Additional Perspective On J Jill Inc

The firm reported the previous year's revenue of 517.75 M. Net Loss for the year was (125.5 M) with profit before overhead, payroll, taxes, and interest of 428.58 M.

Asset Breakdown

513.1 M
Assets Non Current
290 M
119.7 M
Current Assets
Total Assets632.79 Million
Current Assets119.68 Million
Assets Non Current513.11 Million
Goodwill289.96 Million

Our perspective of the new J Jill hike

J Jill new risk adjusted performance upsurges over 0.15. J Jill Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize J Jill Inc independently to ensure intended market timing strategies are aligned with expectations about J Jill volatility.

Our Final Take On J Jill

While some other firms within the apparel retail industry are still a little expensive, even after the recent corrections, J Jill may offer a potential longer-term growth to stakeholders. Taking everything into account, as of the 10th of December 2020, our primary 30 days Buy-Hold-Sell recommendation on the company is Strong Sell. We believe J Jill is overvalued with below average chance of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of J Jill Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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