Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate the following ratios for Target and Walmart for two years. Present your calculations in a table. Liquidity ratios: Working Capital = Current Assets -

Calculate the following ratios for Target and Walmart for two years. Present your calculations in a table.

Liquidity ratios:

  1. Working Capital = Current Assets - Current Liabilities
  2. Current Ratio = Current Assets Current Liabilities
  3. Inventory Turnover Ratio = Cost of Goods Sold Average Inventory

Solvency ratios:

  1. Debt-to-Equity Ratio = Total Liabilities Stockholders' Equity

Profitability ratios:

  1. Net Margin (Profit Margin) Ratio = Net Income Net Sales
  2. Gross Profit Ratio = Gross Profit Net Sales
  3. Asset Turnover Ratio = Net Sales Average Total Assets
  4. Return on Equity = Net Income Average Total Stockholders' Equity

Stock market ratios:

  1. Earnings per Share = Net Earnings Average number of outstanding common shares
  2. Price/Earnings (P/E) Ratio = Market Price Per Share Earnings Per Share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting and Analysis

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

7th edition

1259722651, 978-1259722653

More Books

Students also viewed these Accounting questions

Question

If (a + bx)e y/x = x, then prove that 2. dx dy dx 2 4(-y)

Answered: 1 week ago