In appendix 5a, we learned about several ratios that utilize information from the income statement and/or balance sheet and are used to analyze performance. We are going to compute two ratios: the quick (or acid-test) ratio and return on equity (ROE) for two companies (who are also competitors): Wal-Mart and Target.

1. Compute the assigned ratios for your assigned companies over the fiscal years 2011-2016 (6 years). The data needed to compute these ratios can be found in the GQA #2 folder on blackboard. Note: All of the data is presented in millions of dollars, except for stock price, which presented as a dollar amount. Present your ratios and calculations in a table formatted as follows: Ratio Company Fiscal Year Calculation (show work here) Computed Ratio (final answer)

Fiscal_Year_End_Date	Fiscal_Year	Company_Name	Current_Assets	Total_Assets	Common_Shareholders_Equity	Cash_and_Short_Term_Investments	Preferred_Dividends	Current_Liabilities	Total_Liabilities	Net_Income	Accounts_Receivable	Stock_Price
31-Jan-10	2009	TARGET CORP	18424	44533	15347	2200	0	11327	29186	2488	6966	51.27
31-Jan-11	2010	TARGET CORP	17213	43705	15487	1712	0	10070	28218	2920	6153	54.83
31-Jan-12	2011	TARGET CORP	16449	46630	15821	794	0	14287	30809	2929	5927	50.81
31-Jan-13	2012	TARGET CORP	16388	48163	16558	784	0	14031	31605	2999	5841	60.41
31-Jan-14	2013	TARGET CORP	11573	44553	16231	695	0	12777	28322	1971	0	56.64
31-Jan-15	2014	TARGET CORP	14087	41404	13997	2210	0	11736	27407	-1636	0	73.61
31-Jan-16	2015	TARGET CORP	14130	40262	12957	4046	0	12622	27305	3363	0	72.42
31-Jan-17	2016	TARGET CORP	11990	37431	10953	2512	0	12708	26478	2737	0	64.48
31-Jan-10	2009	WAL-MART STORES INC	48331	170706	70749	7907	0	55561	97470	14335	4144	53.43
31-Jan-11	2010	WAL-MART STORES INC	51893	180663	68542	7395	0	58484	109008	16389	5089	56.07
31-Jan-12	2011	WAL-MART STORES INC	54975	193406	71315	6550	0	62300	117241	15699	5937	61.36
31-Jan-13	2012	WAL-MART STORES INC	59940	203105	76343	7781	0	71818	120848	16999	6768	69.95
31-Jan-14	2013	WAL-MART STORES INC	61185	204751	76255	7281	0	69345	121921	16022	6677	74.68
31-Jan-15	2014	WAL-MART STORES INC	63278	203706	81394	9135	0	65272	117769	16363	6778	84.98
31-Jan-16	2015	WAL-MART STORES INC	60239	199581	80546	8705	0	64619	115970	14694	5624	66.36
31-Jan-17	2016	WAL-MART STORES INC	57689	198825	77798	6867	0	66928	118290	13643	5835	66.74

Quick Ratio Wal-Mart 2011 2012 2013 2014 2015 2016

Quick Ratio Target 2011 2012 2013 2014 2015 2016

ROE Wal-Mart 2011 2012 2013 2014 2015 2016

ROE Target 2011 2012 2013 2014 2015 2016

2. Present the results of your calculations graphically. Specifically, I would like you to utilize a histogram or line graph to present the ratios for both firms over 2011-2016. There should be two graphs, one for each assigned ratio (each graph contains information for both assigned companies).

3. Create a similar graph for the stock price of these two firms over 2011-2016.

4. After analyzing the results of your analyses, answer the following questions: a. Which companies short-term debt paying ability concerns you more? Justify your argument. b. Why did Targets ROE drop so significantly in 2014? Please investigate why this significant dip occurred using Targets 2014 10K, which can be found in the GQA #2 folder. (Tip: Targets income statement can be found on page 31 of the 10K. What caused net income to be so low?) c. You will notice that while Targets ROE dropped significantly in 2014, their stock price did not. In fact, it actually increased (relative to 2013). Using what we learned in chapter 4, why do you think Targets stock price did not drop in 2014 even though net income was negative for that year?