Question
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:
- Working Capital = Current Assets - Current Liabilities
- Current Ratio = Current Assets Current Liabilities
- Inventory Turnover Ratio = Cost of Goods Sold Average Inventory
Solvency ratios:
- Debt-to-Equity Ratio = Total Liabilities Stockholders' Equity
Profitability ratios:
- Net Margin (Profit Margin) Ratio = Net Income Net Sales
- Gross Profit Ratio = Gross Profit Net Sales
- Asset Turnover Ratio = Net Sales Average Total Assets
- Return on Equity = Net Income Average Total Stockholders' Equity
Stock market ratios:
- Earnings per Share = Net Earnings Average number of outstanding common shares
- Price/Earnings (P/E) Ratio = Market Price Per Share Earnings Per Share
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
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