REQUIRED a. What are the likely reasons for the changes in Walmart's rate of ROA during the threeyear period? Analyze the financial ratios to the maximum depth possible. b. What are the likely reasons for the changes in Walmart's rate of RocE during the threeyear period? Note: Requirements c and d require coverage of material from Chapter 5 . c. How has the short-term liquidity risk of Walmart changed during the three-year period? d. How has the long-term solvency rik of Walmart changed during the three-year period? Profitability and Risk Analysis of Walmart Stores Part A Walmart Stores (Waimart) is the world's largest retailer, It employs an "everyday low price" strategy and operates stores as three business segments: Walmart Stores U.S, International, and Sam's Club. 1. Walmart Stores U.SA This segment represented 62.39 of all 2015 sales and operates stores in three different formats: Discount stores (104,000 average square feet), Supercenters (178,000 average square feet), and Neighborhood Markets (42,000 average square feet). Each format carries a variety of clothing, housewares, electronic equipment, pharmaceuticals, health and beauty products, sporting goods, and similar items, and Supercenters include a full-line supermarket." Walmart U.S. stores are in all 50 states: Washington, D.C. and Puerto Rico. Discount stores are in 41 states, Supercenters are in 49 states, and Neighborhood Markets are in 31 states. Customers also can purchase many items through the company/s website at www.waimart.com. 2. International: The International segment includes wholly owned subsidiaries in Argentina, Brazil, Canada, Chile, China, India, Japan, and the United Kingdom; majority-owned subsidiaries are in Africa, Central America, and Mexico. The merchandising strategy for the international segment is similar to that of the Walmait U.S. segment. 3. Sam's Clubs: Sam's Clubs are membership club warehouses that operate in 48 states. The average Sam's Club is approximately 134,000 square feet, and customers can purchase many liems through the company's website at wwwsamsclub.com. These ware: houses offer bulk displays of brand name merchandise, including hard goods, some soft goods, institutional-size grocery items, and certain private-label items. Gross margins for Sam's Clubs stores are lower than those of the U.S. and Internationat segments