Exhibit 5.26 Walmart Risk Ratios (Integrative Case 5.1) 2015 2014 2013 Current ratio Quick ratio Operating cash flow to current liabilities ratio Days accounts receivable outstanding Days inventory held Days accounts payable outstanding Net days of working capital financing needed Liabilities to 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 Operating cash flow to total liabilities ratio Altman's Z-score Probability of bankruptcy 0.97 0.24 0.42 5.06 44.99 37.87 12.17 0.58 1.44 0.33 0.50 11.68 0.24 4.81 0.00% 0.88 0.20 0.33 5.15 45.19 38.37 11.98 0.60 1.62 0.35 0.55 12.19 0.19 4.41 0.00% LO 5-2, LO 5-3, LO 5-4, INTEGRATIVE CASE 5.1 Walmart LO 5-6 Exhibit 5.26 presents risk ratios for Walmart for 2014 and 2013. Exhibits 1.19, 1.20, and 1.21 in Chapter 1 present the financial statements for Walmart. REQUIRED a. Compute the values of each of the ratios in Exhibit 5.26 for Walmart for 2015. Walmart had 3,162 million common shares outstanding at the end of fiscal 2015, and the market price per share was $66.36. For 2014, the comparable shares and price per share were 3,228 million and $84.98, and for 2013, they were 3,233 million and $74.68, respectively. For days accounts receivable outstanding, use total revenues in your calculations. b. Interpret the changes in Walmart's risk ratios during the three-year period, indicating any areas of concern. Exhibit 5.26 Walmart Risk Ratios (Integrative Case 5.1) 2015 2014 2013 Current ratio Quick ratio Operating cash flow to current liabilities ratio Days accounts receivable outstanding Days inventory held Days accounts payable outstanding Net days of working capital financing needed Liabilities to 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 Operating cash flow to total liabilities ratio Altman's Z-score Probability of bankruptcy 0.97 0.24 0.42 5.06 44.99 37.87 12.17 0.58 1.44 0.33 0.50 11.68 0.24 4.81 0.00% 0.88 0.20 0.33 5.15 45.19 38.37 11.98 0.60 1.62 0.35 0.55 12.19 0.19 4.41 0.00% LO 5-2, LO 5-3, LO 5-4, INTEGRATIVE CASE 5.1 Walmart LO 5-6 Exhibit 5.26 presents risk ratios for Walmart for 2014 and 2013. Exhibits 1.19, 1.20, and 1.21 in Chapter 1 present the financial statements for Walmart. REQUIRED a. Compute the values of each of the ratios in Exhibit 5.26 for Walmart for 2015. Walmart had 3,162 million common shares outstanding at the end of fiscal 2015, and the market price per share was $66.36. For 2014, the comparable shares and price per share were 3,228 million and $84.98, and for 2013, they were 3,233 million and $74.68, respectively. For days accounts receivable outstanding, use total revenues in your calculations. b. Interpret the changes in Walmart's risk ratios during the three-year period, indicating any areas of concern
