Costco vs. Walmart

10. a) Compare the current ratio and quick ratio between Costco and Walmart and comment

on the difference.

b) Compare the times interest earned ratio and liability-to-debt ratio between Costco

Walmart and comment on the difference.

c) Summarize your findings about each companys liquidity and solvency. Do you have

any concerns about each companys ability to meet its debt obligations?

the balance sheet for walmart is included

Created by EDGAR Online, Inc. WALMART INC. INCOME STATEMENT Form Type: 10-K Period End: Jan 31, 2019 Date Filed: Mar 28, 2019 Table of Contents Walmart Inc. Consolidated Statements of Income Fiscal Years Ended January 31, 2019 2018 2017 510329 495761 481317 4076 4582 4556 514405 500343 485873 385301 373396 361256 107147 106510 101853 21957 20437 22764 (Amounts in millions, except per share data) Revenues: Net sales Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Debt Capital lease and financing obligations Interest income Interest, net Loss on extinguishment of debt 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 1975 371 -217 2129 0 8368 11460 4281 7179 1978 352 -152 2178 3136 0 15123 4600 10523 2044 323 -100 2267 0 0 20497 6204 14293 -509 6670 -661 9862 -650 13643 2.28 3.29 4.4 Net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walmart 2.26 3.28 4.38 Weighted-average common shares outstanding: Basic Diluted 2929 2945 2995 3010 3101 3112 Dividends declared per common share 2.08 2.04 2 Created by EDGAR Online Inc WALMART INC BALANCE SHEET Form Type: 10-K Period End: Jan 31, 2019 Date Filed: Mar 28, 2019 Table or Contents Walmart Inc Consolidated Balance Sheets As of January 31. 2019 2018 7722 6283 44269 3623 61897 6756 5614 4373 3311 59664 (Amounts in millions) ASSETS Current assets Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment Property and equipment Less accumulated depreciation Property and equipmen, niet Property under capital case and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations, net 185RIO -81493 104317 185154 -77479 107675 12760 -5682 7078 12703 -5560 7143 Goodwill Other long-term assets Total assets 31181 14822 219295 18242 1179 204532 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Acered habilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities 5225 47060 22159 428 1876 729 5257 46092 22122 645 3738 667 78521 77477 Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other 43520 6683 11981 30045 6780 8354 Commitments and contingencies Equity Common stock Capital in excess of par value Retained camnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity Total liabilities and equity 288 2965 80785 -11542 72496 713 79634 219295 295 2648 85107 -10181 77869 2953 0822 204522 COSTCO WHOLESALE CORPORATION Consolidated Statement of Income For Fiscal Years Ended (S millions) September 2, 2018 Total revenue $141,576 Operating expenses Merchandise costs 123, 152 Seling, general and administrative 13,876 Preopening expenses 68 Operating income... 4,480 Other (income) expense Interest expense.. Interest income and other, net (121) Income before income taxes 4.442 Provision for income taxes 1.263 Net income including noncontrolling interests 3.179 Net income attributable to noncontrolling interests. (45) Net income attributable to Costco $ 3.134 159 1204 COSTCO WHOLESALE CORPORATION Consolidated Balance Sheets Smillions, except par value and share data September 2, 2018 September 3, 2017 Current Cash and cash equivalent $ 6.055 $ 4548 Short-term investments 1.233 Recevables et 1.000 1.432 Merchandise inventore 11.040 9134 Other current at 272 Total current 202 17317 Net property and equipment 18.161 Other 880 Total 540.30 5353 Current abilities Accounts payable 511237 $9.00 Accrued sanes and benetes 2.90 2.700 Accrued member rewards 105 Deferred membership to 1634 5490 Other current 2014 2.725 Total current 19.900 17.405 Long-term detit 6.437 6.573 Others 1354 1.200 Total liabilit .. 27727 25.268 Equity Preferred stock 8.01 par le Common stock 50 01 per value Addisional and in capital 5.800 Accumulated other comprehensive (1,199 1014) Retained emings 7.57 5.se Total Costco stockholders' equity 12. 10,778 Noncontrolling interests 304 301 Total equity 13.10 11.079 Totallibilities and equity $40.00 $36.347