Part II - Recommendation: suppose that a friend has just inherited some money and is considering investing in the company you have analyzed. What is your recommendation? Fully explain the reasons for your recommendation. Refer to the specific findings from your ratio analysis. If the investing period varies, for example, three months, or five years, will your recommendation be different? Why?

Group Homework 2: Case Study - Financial Ratio Analysis Company Name Walmart Costco Fiscal Year End Year end: Jan. 31 Year end: Sept. 1 Period As of Jan. 31, 2021 As of Jan. 31, 2020 As of Aug. 31, 2020 As of Aug. 31, 2019 Liquidity Analysis: Current Ratio 0.34 0.79 1.13 1.01 Acid-Test Ratio 0.49 0.22 0.64 0.52 Asset Management Analysis: Acounts Recivable Turnover 85.81 83.38 107.59 99.48 Average Collection Period 4.25 4.38 3.38 3.83 Inventory Turnover 9.35 3.88 11.84 11.66 Average Sale Period 38.81 41.02 29.76 30.81 Asset Turnover 2.21 2.22 3.00 3.36 Debt Management Analysis: Times Interest Earned(Gurufocus.com) 9.74 7.91 33.97 31.58 Debt-to-Equity Ratio 0.56 0.67 0.41 0.44 Profitability Analysis: Gross Margin Percentage 24.83 24.69 13.09 12.98 Net Profit Margin Percentage 2.42 2.84 2.40 2.40 Return on Assets 5.43 6.43 7.31 8.16 Return on Equity 15.66 18.64 21.70 23.77 Market Performance Analysis: Earnings per Share 4.75 5.19 9.02 8.26 Price-Earnings Ratio 29.34 21.52 37.35 34.28 Book Value per Share 31.03 28.80 42.39 35.45