Question
Dollar Tree Inc. in Millions Target Inc. in Millions Total Assets 2021 $20,696.00 Total Assets 2021 $51,248 Please note the ratio computations in the comment
Dollar Tree Inc. | in Millions | Target Inc. | in Millions | ||||
Total Assets 2021 | $20,696.00 | Total Assets 2021 | $51,248 | Please note the ratio computations in the comment box. This is the same information that was included in the part 2 instructions. Please let me know if you have questions. | |||
Total Stockholders' equity 2021 | $7,285.30 | Total Stockholder's equity 2021 | $14,440 | ***You must use cell references from the applicable worksheets to earn credit on your ratio analysis. | |||
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: 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 should agree with your #4 answer
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