Question
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
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
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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Financial Statement Analysis And Security Valuation
Authors: Stephen H Penman
4th Edition
0073379662, 9780073379661
