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How do I solve this? RATIOS RETAIL WALMART TARGET ANALYSIS Profitability Ratios (%) Gross Margin 25.37 25.82 EBITD Margin 9.31 8.19 Operating Margin 3.28 5.16

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RATIOS RETAIL WALMART TARGET ANALYSIS

Profitability Ratios (%)

Gross Margin 25.37 25.82

EBITD Margin 9.31 8.19

Operating Margin 3.28 5.16

Pretax Margin 2.18 5.07

Effective Tax Rate 20.28 22.65

Financial Strength

Quick Ratio 0.2 0.3

Current Ratio 0.76 0.95

LT Debt to Equity 0.46 96.65

Total Debt to Equity 0.58 98.96

Interest Coverage 12.35

Valuation Ratios

P/E Ratio 26.94 14.71

Price to Sales (P/S) 0.52 0.6

Price to Book (P/B) 3.25 3.89

Price to Tangible Book 4.19 3.89

Price to Cash Flow 11.32

Price to Free Cash Flow 9.26 7.07

Management Effectiveness (%)

Return On Assets 4.82 7.62

Return On Investment 8.41 11.81

Return On Equity 12.66 26.35

Dividends

Dividend Yield 2.5 3.09

Payout Ratio 46.62

Efficiency

Revenue/Employee 227,429 208,345

Net Income/Employee 4,783 8,487

Receivable Turnover 90.45 85.67

Inventory Turnover 8.26 5.71

Asset Turnover 2.46 1.88

Summary

Referring to your ratio analysis above, in which company would you be willing to invest, and why?

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