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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

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