Compute the values of each of the ratios in Exhibit 5.26 for Walmart for 2020. Walmart had 2,821 million common shares outstanding at the end of fiscal 2020, and the market price per share was $140.49. For 2019, the comparable shares and price per share were 2,832 million and $114.49, and for 2018, they were 2,878 million and $95.83, respectively. Notes: For days accounts receivable outstanding, use total revenues in your calculations. For computations with interest expense, exclude interest income but include imputed interest expense on average operating lease liabilities (current and long-term); Walmart discloses an implicit interest rate of 6.1% on operating leases. For the interest coverage ratio (cash flow basis), ignore imputed interest for operating leases (as done in the text). For earnings before interest and taxes in the Altmans Z calculation, include interest income in earnings before interest and taxes. Interpret the changes in Walmarts risk ratios during the three-year period, indicating any areas of concern.

2018 2019 2020 ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets $ 7,722 6,283 44,269 3,623 $ 61,897 $ 9,465 6,284 44,435 1,622 $ 61,806 $ 17,741 6,516 44.949 20,861 $ 90,067 104,317 7,078 31,181 14,822 $219.295 105,208 17,424 4,417 31,073 16,567 $236,495 92,201 13,642 4.005 28,983 23,598 $252,496 Property and equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Goodwill Other long-term assets TOTAL ASSETS LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating lease obligations due within one year Finance lease obligations due within one year Total current liabilities $ 5,225 47,060 22.159 428 1876 $ 575 46,973 22,296 280 5,362 1,793 511 $ 77,790 $ 224 49,141 37,966 242 3,115 1,466 491 $ 92,645 729 $ 77,477 43,520 43,714 16,171 4,307 12,961 41,194 12,909 3,847 14,370 6,683 11,981 Long-term debt Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity TOTAL LIABILITIES AND EQUITY 288 2,965 80,785 (11,542) $ 72,496 7,138 $ 79,634 $219,295 284 3,247 83,943 (12.805) $ 74,669 6,883 $ 81,552 $236,495 282 3,646 88,763 (11,766) $ 80,925 6.606 $ 87,531 $252,496 2019 2020 2021 $510,329 4,076 $514,405 $555,233 3,918 $559,151 $519,926 4,038 $523,964 394,605 108,791 $ 20,568 385,301 107,147 $ 21,957 420,315 116.288 $ 22,548 Net sales Membership and other income Total revenues Cost of sales Operating, selling, general, and administrative expenses Operating income Interest: Debt Finance, capital lease, and financing obligations Interest income Interest, net Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walmart Weighted-average common shares outstanding: Basic Diluted Dividends declared per common share 1,975 371 (217) $ 2,129 8,368 $ 11,460 4,281 $ 7,179 (509) $ 6,670 2,262 337 (189) $ 2,410 (1,958) $ 20,116 4,915 $ 15,201 (320) $ 14,881 1.976 339 (121) $ 2,194 (210) $ 20,564 6,858 $ 13,706 (196) $ 13,510 2.28 2.26 5.22 5.19 4.77 4.75 2,929 2,945 2.08 2,850 2,868 2.12 2,831 2,847 2.16 Walmart, Inc. Consolidated Statements of Comprehensive Income 2018 $7,179 (509) $6,670 2019 $15,201 (320) $ 14,881 2020 $13,706 (196) $ 13,510 (Amounts in millions) Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability Other comprehensive income (loss), net of income taxes Other comprehensive income) loss attributable to noncontrolling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Comprehensive income) loss attributable to noncontrolling interest Comprehensive income attributable to Walmart (226) 272 (290) 131 $ (113) 286 122 (399) (1,244) $(1,235) 842 (221) 235 (30) $ 826 188 75 $7,066 (321) $6,745 (28) (1.263) $13,966 (348) $13,618 213 1,039 $14,532 17 $14,549 Exhibit 5.26 Walmart Risk Ratios (Integrative Case 5.1) 2020 Current ratio Quick ratio Operating cash flow to current liabilities ratio Accounts receivable turnover Days accounts receivable outstanding Inventory turnover Days inventory held Accounts payable turnover Days accounts payable outstanding Net days of working capital financing needed Liabilities to total assets ratio Liabilities to shareholders equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Interest coverage ratio net income basis) Interest coverage ratio (cash flow basis) Altman's Z-score Probability of bankruptcy Altman's components: Net working capital/TA Retained earnings/TA EBIT/TA MVE/BV Liabilities Sales/TA 2019 0.79 0.20 0.33 83.39 4.38 8.90 41.02 8.90 4101 8641 0.66 1.90 044 0.79 739 12.72 4.20 0.0796 2018 0.80 0.18 0.36 8648 4.22 8.75 41.71 8.76 41.65 87.58 0.64 1.75 0.39 0.63 5.88 14.52 4.17 0.08% -0.07 0.35 0.10 2.09 2.22 -0.07 0.37 0.06 1.97 2.35 4.17 2,878 $ 95.83 $275,799 4.20 Shares end of year (millions) Price per share end of year MV 2,821 $ 140.49 $396,322 2,832 $ 11449 $324.236 2018 2019 2020 $ 7,170 515.201 $ 12.06 10.6.78 3.516 4850 10.007 (1,886 15 01031 11,152 12.58% 8,401 320 1911 1,521 1,734 1.561 (568 11,311 1.831 154 (3001 12741 12,395) 6.966 $ 27,753 1931 $ 25,255 11:30 $36,074 519 Cash flows from operating activities Consolidated net income Adjustments to reconcile consolidated net income to net cash provided by operating activities Depreciation and amortation Net weised and reliad gain and Lasses on disposal of business serions ASDA pension contribution Deferred income taxe Other opening activities Changes in certaines and abilities, net of attached quisitions and dispositions Receivables, net Inventores Accounts payable Accrued liabilities Accrued income Netcash provided by operating activities Cash flows from investing activities Payments for property and equipment Proceech from the disposal of property and equipment Proceech from the disposal of certain operation Payments for business acquisitions net cash couired Other investing activities Net cash used in investing activities Cashflows from financing activities Nut change in short-term borrowing Proceeds fromance of long-term debe Repayments of long term debe Dividerspil Purchase of company stock Dividends paid to controlling met Other financing activities Net cash used in financing activities Effect of exchange rates on cash cash equivalents, and restricted cash Net increase in cash.cash equivalents, and restricted cash Cath and cath equivalents reclassifieds et held for sale Cath, cash equivalent and stricted cash at beginning of year Cash Cash equivalents, and restricted cash or end of year Supplemental disclosure of cash flow information: Income taxes paid Interest paid 110.40 (10,7051 (10.26 321 215 870 56 114641 156 0430 479 102 5124,058 59,128) $10071) (4,856 15,672 13.784 16,1021 17410 (430 16,048 5,717) 15,382 15,1160 12,6050 $ 12.537 $4301 $ 742 10 5(14.2991 1601 $ 1,759 11.2.300 $16,117) $ 235 $ 10.121 $ (1,848 2,515 $ 17.786 $ 7.756 7.750 $9.515 3.982 2,346 3,616 5.271 2,216 Exhibit 5.26 Walmart Risk Ratios (Integrative Case 5.1) 2020 Current ratio Quick ratio Operating cash flow to current liabilities ratio Accounts receivable turnover Days accounts receivable outstanding Inventory turnover Days inventory held Accounts payable turnover Days accounts payable outstanding Net days of working capital financing needed Liabilities to total assets ratio Liabilities to shareholders equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Interest coverage ratio net income basis) Interest coverage ratio (cash flow basis) Altman's Z-score Probability of bankruptcy Altman's components: Net working capital/TA Retained earnings/TA EBIT/TA MVE/BV Liabilities Sales/TA 2019 0.79 0.20 0.33 83.39 4.38 8.90 41.02 8.90 4101 8641 0.66 1.90 044 0.79 739 12.72 4.20 0.0796 2018 0.80 0.18 0.36 8648 4.22 8.75 41.71 8.76 41.65 87.58 0.64 1.75 0.39 0.63 5.88 14.52 4.17 0.08% -0.07 0.35 0.10 2.09 2.22 -0.07 0.37 0.06 1.97 2.35 4.17 2,878 $ 95.83 $275,799 4.20 Shares end of year (millions) Price per share end of year MV 2,821 $ 140.49 $396,322 2,832 $ 11449 $324.236 2018 2019 2020 ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets $ 7,722 6,283 44,269 3,623 $ 61,897 $ 9,465 6,284 44,435 1,622 $ 61,806 $ 17,741 6,516 44.949 20,861 $ 90,067 104,317 7,078 31,181 14,822 $219.295 105,208 17,424 4,417 31,073 16,567 $236,495 92,201 13,642 4.005 28,983 23,598 $252,496 Property and equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Goodwill Other long-term assets TOTAL ASSETS LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating lease obligations due within one year Finance lease obligations due within one year Total current liabilities $ 5,225 47,060 22.159 428 1876 $ 575 46,973 22,296 280 5,362 1,793 511 $ 77,790 $ 224 49,141 37,966 242 3,115 1,466 491 $ 92,645 729 $ 77,477 43,520 43,714 16,171 4,307 12,961 41,194 12,909 3,847 14,370 6,683 11,981 Long-term debt Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity TOTAL LIABILITIES AND EQUITY 288 2,965 80,785 (11,542) $ 72,496 7,138 $ 79,634 $219,295 284 3,247 83,943 (12.805) $ 74,669 6,883 $ 81,552 $236,495 282 3,646 88,763 (11,766) $ 80,925 6.606 $ 87,531 $252,496 2019 2020 2021 $510,329 4,076 $514,405 $555,233 3,918 $559,151 $519,926 4,038 $523,964 394,605 108,791 $ 20,568 385,301 107,147 $ 21,957 420,315 116.288 $ 22,548 Net sales Membership and other income Total revenues Cost of sales Operating, selling, general, and administrative expenses Operating income Interest: Debt Finance, capital lease, and financing obligations Interest income Interest, net Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walmart Weighted-average common shares outstanding: Basic Diluted Dividends declared per common share 1,975 371 (217) $ 2,129 8,368 $ 11,460 4,281 $ 7,179 (509) $ 6,670 2,262 337 (189) $ 2,410 (1,958) $ 20,116 4,915 $ 15,201 (320) $ 14,881 1.976 339 (121) $ 2,194 (210) $ 20,564 6,858 $ 13,706 (196) $ 13,510 2.28 2.26 5.22 5.19 4.77 4.75 2,929 2,945 2.08 2,850 2,868 2.12 2,831 2,847 2.16 Walmart, Inc. Consolidated Statements of Comprehensive Income 2018 $7,179 (509) $6,670 2019 $15,201 (320) $ 14,881 2020 $13,706 (196) $ 13,510 (Amounts in millions) Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability Other comprehensive income (loss), net of income taxes Other comprehensive income) loss attributable to noncontrolling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Comprehensive income) loss attributable to noncontrolling interest Comprehensive income attributable to Walmart (226) 272 (290) 131 $ (113) 286 122 (399) (1,244) $(1,235) 842 (221) 235 (30) $ 826 188 75 $7,066 (321) $6,745 (28) (1.263) $13,966 (348) $13,618 213 1,039 $14,532 17 $14,549 Exhibit 5.26 Walmart Risk Ratios (Integrative Case 5.1) 2020 Current ratio Quick ratio Operating cash flow to current liabilities ratio Accounts receivable turnover Days accounts receivable outstanding Inventory turnover Days inventory held Accounts payable turnover Days accounts payable outstanding Net days of working capital financing needed Liabilities to total assets ratio Liabilities to shareholders equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Interest coverage ratio net income basis) Interest coverage ratio (cash flow basis) Altman's Z-score Probability of bankruptcy Altman's components: Net working capital/TA Retained earnings/TA EBIT/TA MVE/BV Liabilities Sales/TA 2019 0.79 0.20 0.33 83.39 4.38 8.90 41.02 8.90 4101 8641 0.66 1.90 044 0.79 739 12.72 4.20 0.0796 2018 0.80 0.18 0.36 8648 4.22 8.75 41.71 8.76 41.65 87.58 0.64 1.75 0.39 0.63 5.88 14.52 4.17 0.08% -0.07 0.35 0.10 2.09 2.22 -0.07 0.37 0.06 1.97 2.35 4.17 2,878 $ 95.83 $275,799 4.20 Shares end of year (millions) Price per share end of year MV 2,821 $ 140.49 $396,322 2,832 $ 11449 $324.236 2018 2019 2020 $ 7,170 515.201 $ 12.06 10.6.78 3.516 4850 10.007 (1,886 15 01031 11,152 12.58% 8,401 320 1911 1,521 1,734 1.561 (568 11,311 1.831 154 (3001 12741 12,395) 6.966 $ 27,753 1931 $ 25,255 11:30 $36,074 519 Cash flows from operating activities Consolidated net income Adjustments to reconcile consolidated net income to net cash provided by operating activities Depreciation and amortation Net weised and reliad gain and Lasses on disposal of business serions ASDA pension contribution Deferred income taxe Other opening activities Changes in certaines and abilities, net of attached quisitions and dispositions Receivables, net Inventores Accounts payable Accrued liabilities Accrued income Netcash provided by operating activities Cash flows from investing activities Payments for property and equipment Proceech from the disposal of property and equipment Proceech from the disposal of certain operation Payments for business acquisitions net cash couired Other investing activities Net cash used in investing activities Cashflows from financing activities Nut change in short-term borrowing Proceeds fromance of long-term debe Repayments of long term debe Dividerspil Purchase of company stock Dividends paid to controlling met Other financing activities Net cash used in financing activities Effect of exchange rates on cash cash equivalents, and restricted cash Net increase in cash.cash equivalents, and restricted cash Cath and cath equivalents reclassifieds et held for sale Cath, cash equivalent and stricted cash at beginning of year Cash Cash equivalents, and restricted cash or end of year Supplemental disclosure of cash flow information: Income taxes paid Interest paid 110.40 (10,7051 (10.26 321 215 870 56 114641 156 0430 479 102 5124,058 59,128) $10071) (4,856 15,672 13.784 16,1021 17410 (430 16,048 5,717) 15,382 15,1160 12,6050 $ 12.537 $4301 $ 742 10 5(14.2991 1601 $ 1,759 11.2.300 $16,117) $ 235 $ 10.121 $ (1,848 2,515 $ 17.786 $ 7.756 7.750 $9.515 3.982 2,346 3,616 5.271 2,216 Exhibit 5.26 Walmart Risk Ratios (Integrative Case 5.1) 2020 Current ratio Quick ratio Operating cash flow to current liabilities ratio Accounts receivable turnover Days accounts receivable outstanding Inventory turnover Days inventory held Accounts payable turnover Days accounts payable outstanding Net days of working capital financing needed Liabilities to total assets ratio Liabilities to shareholders equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Interest coverage ratio net income basis) Interest coverage ratio (cash flow basis) Altman's Z-score Probability of bankruptcy Altman's components: Net working capital/TA Retained earnings/TA EBIT/TA MVE/BV Liabilities Sales/TA 2019 0.79 0.20 0.33 83.39 4.38 8.90 41.02 8.90 4101 8641 0.66 1.90 044 0.79 739 12.72 4.20 0.0796 2018 0.80 0.18 0.36 8648 4.22 8.75 41.71 8.76 41.65 87.58 0.64 1.75 0.39 0.63 5.88 14.52 4.17 0.08% -0.07 0.35 0.10 2.09 2.22 -0.07 0.37 0.06 1.97 2.35 4.17 2,878 $ 95.83 $275,799 4.20 Shares end of year (millions) Price per share end of year MV 2,821 $ 140.49 $396,322 2,832 $ 11449 $324.236