Question
https://www.nasdaq.com/symbol/wmt/financials?query=balance-sheet You are the newly appointed treasurer and your partner is the newly appointed controller of your company. In order to learn more about your
https://www.nasdaq.com/symbol/wmt/financials?query=balance-sheet
You are the newly appointed treasurer and your partner is the newly appointed controller of your company. In order to learn more about your company, you have decided to analyze the company's financial performance over the last 2 years. Decided to calculate the following ratios for the company's 2 most recent years (2016 & 2017)in the noted categories :
- Profitability Ratios
- Gross Margin Percentage
- EBIT Margin Percentage
- Resource Management Ratios:
- Age of Inventory
- Age of Accounts Receivable
- Age of Accounts Payable
- Liquidity Ratio:
- Current Ratio
- Leverage Ratios
- Debt-to-Assets Ratio
- Debt-to-Equity Ratio
- Interest Coverage
In addition, you have decided to evaluate the Return on Equity (ROE) of the company by calculating the DuPont Ratio, including the Profit Margin, Asset Turnover, and Financial Leverage Ratios. Show the calculations of each of these ratios for the company's 2 most recent years. Provide a brief analysis of each of the ratios. Provide a brief evaluation regarding the company's performance as it relates to the four categories listed above, plus the DuPont Equation. Finally,discuss how these ratios will help appropriate financial decisions as they relate to the role as a financial manager, and also assist in achieving the firm's financial management goals.
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