Companies: Walmart and Target using 2017-2018

Walmart as the "Target" company

The objective of this project is to link the principles, practices and policies of financial management with the actual performances of companies by using their financial statements and other published information about their activities. More specifically, each student must select one target non-financial U.S. public corporation that will be the primary focus of your report together with one additional U.S. public company in the same industry, which can be used as a competitor for comparison. Find your selected target and competitor firms Form 10K reports including income statements, balance sheets, and cash flow statements for their last two years (e.g. 2018 and 2017). The 10K report can usually be found on the companys website; it can also always be found on the U.S. Securities and Exchange Commissions website (EDGAR). The following items are suggested outline for your report. Introduction with General Information about the target Company, e.g., the complete name of the selected company the symbol/ticker under which the companys stock trades the exchange(s) on which the companys stock trades the companys industry a brief description of the companys business, its significant products, areas of operation, and events in company history. the companys financial reporting year (calendar or fiscal, if fiscal specify year) the name of the companys auditor issues mentioned in the auditors reports, if any (if non please make note of that) main competitors to the company indicated in the annual report (as disclosed by the company in the Competition section of the report) Assessment of the Corporations Financial Performance: 1. Present the balance sheet for the last two years (simplify and try to fit into one page) for your target and competitor companies. 2. Present the income statement for the last two years (simplify and try to fit into one page) for your target and competitor companies. 3. Compute the following ratios for the most recent and previous year for your firm as well as the competitor firm (try to create a table that summarizes all the ratios for the target and competitor companies). Profitability Ratios Gross Margin Operating margin Net profit margin Liquidity Ratios Current Ratio Quick Ratio Cash Ratio Asset Efficiency Fixed Asset Turnover Working Capital Ratios Accounts Receivable Days Accounts Payable Days Inventory Turnover Leverage Ratio Book debt-to-equity ratio Market debt-to-equity ratio (For debt, include long-term and short-term debt; for cash, include marketable securities. To calculate the firms market capitalization, multiply the number of shares outstanding by the firms historic closing stock price. The historical stock prices for each firm could be obtained from Yahoo! Finance or Google Finance. Enter the stock symbol, click Historical Prices in the left column, and enter the proper date range to cover the last day of the month corresponding to the date of each financial statement. Use the closing stock prices (not the adjusted close). ) Interest Coverage Ratio EBIT / interest expense Valuation Ratios Price-to-Earnings ratio Market-to-Book ratio Operating Returns Return on equity Return on assets