Question
Below is the balance sheet information for Amazon and Walmart for the fiscal year 2019. Use this data to answer the required questions. ($ millions)
($ millions) | Amazon | Walmart |
Total current assets | $60,427 | $58,318 |
Total non-current assets | $113,243 | $168,209 |
Total assets | $173,670 | $226,527 |
Total current liabilities | $70,194 | $63,876 |
Total non-current liabilities | $81,262 | $97,112 |
Total liabilities | $151,456 | $160,988 |
Total shareholders' equity | $22,214 | $65,539 |
Required: a. Calculate the current ratio and quick ratio for each company. b. Compute the debt-to-equity ratio for each company. c. Determine the equity multiplier for both companies. d. Assess the financial leverage of both companies based on the calculations. e. Discuss which company has better liquidity and which one has more financial leverage, providing reasons for your conclusion.
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