Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dollar Tree Inc. in Millions Target Inc. in Millions Total Assets 2021 $20,696.00 Total Assets 2021 $51,248 Total Stockholders' equity 2021 $7,285.30 Total Stockholder's equity

Dollar Tree Inc. in Millions Target Inc. in Millions
Total Assets 2021 $20,696.00 Total Assets 2021 $51,248
Total Stockholders' equity 2021 $7,285.30 Total Stockholder's equity 2021 $14,440
Jan. 28, 2023 Jan. 29, 2022 Jan. 28, 2023 Jan. 29, 2022
1. Current ratio 1. Current ratio
2. Liabilities-to-equity 2. Liabilities-to-equity
3. Times interest earned 3. Times interest earned
4. Return on Equity -shown as a percentage 4. Return on Equity -shown as a percentage
5. Profit Margin-Shown as a percentage 5. Profit Margin-Shown as a percentage
6. Asset Turnover 6. Asset Turnover
7. Financial Leverage 7. Financial Leverage
8. Redo your Return on Equity calculation by calculating Profit Margin*Asset Turnover*Financial Leverage. 8. Redo your Return on Equity calculation by calculating Profit Margin*Asset Turnover*Financial Leverage.

Guidance for computing ratios in #3 above: 1. Current ratio=Current Assets/Current Liabilities 2. Liabilities-to-equity=Total liabilities/Stockholders Equity 3. Times interest earned = earnings before Interest Expense and taxes/Interest Expense. ****Use Interest expense if given. If the company does not break out interest expense you will have to use net interest. Also, please note that you should be using operating income if given, since we want net of any other nonoperating income or expenses. 4. Return on Equity=Net(loss) earnings/Average Stockholders Equity. 5. Profit Margin=Net(loss) earnings/Sales 6. Asset Turnover=Sales/Average Total Assets 7. Financial Leverage=Average Total Assets/Average Stockholders Equity 8. Redo your Return on Equity calculation by calculating Profit Margin*Asset Turnover*Financial Leverage. Hint: use your solution for #5, 6, and 7. Your answer shou

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Throughput Modeling Financial Information Used By Decision Makers

Authors: Waymond Rodgers

1st Edition

0762303409, 978-0762303403

More Books

Students also viewed these Accounting questions

Question

to encourage a drive for change by developing new ideas;

Answered: 1 week ago

Question

4 What are the alternatives to the competences approach?

Answered: 1 week ago