Question
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions).
Target Corporation | Wal-Mart Stores, Inc. | |||
Income Statement Data for Year | ||||
Net sales | $65,357 | $408,214 | ||
Cost of goods sold | 45,583 | 304,657 | ||
Selling and administrative expenses | 15,101 | 79,607 | ||
Interest expense | 707 | 2,065 | ||
Other income (expense) | (94) | (411) | ||
Income tax expense | 1,384 | 7,139 | ||
Net income | $ 2,488 | $ 14,335 | ||
Balance Sheet Data (End of Year) | ||||
Current assets | $18,424 | $48,331 | ||
Noncurrent assets | 26,109 | 122,375 | ||
Total assets | $44,533 | $170,706 | ||
Current liabilities | $11,327 | $55,561 | ||
Long-term debt | 17,859 | 44,089 | ||
Total stockholders equity | 15,347 | 71,056 | ||
Total liabilities and stockholders equity | $44,533 | $170,706 | ||
Beginning-of-Year Balances | ||||
Total assets | $44,106 | $163,429 | ||
Total stockholders equity | 13,712 | 65,682 | ||
Current liabilities | 10,512 | 55,390 | ||
Total liabilities | 30,394 | 97,747 | ||
Other Data | ||||
Average net accounts receivable | $7,525 | $4,025 | ||
Average inventory | 6,942 | 33,836 | ||
Net cash provided by operating activities | 5,881 | 26,249 | ||
Capital expenditures | 1,729 | 12,184 | ||
Dividends | 496 | 4,217 |
(a) For each company, compute the following ratios. (Enter free cash flow in millions. Round Current ratio to 2 decimal places, e.g. 1.67. Round Debt to assets ratio to 0 decimal places, e.g. 18 or 18%. Round all other answers to 1 decimal place, e.g. 1.6, or 1.6%. Use 365 days for calculation.)
Ratio | Target | Wal-Mart | ||||||||
(1) | Current ratio | :1 | :1 | |||||||
(2) | Accounts receivable turnover | times | times | |||||||
(3) | Average collection period | days | days | |||||||
(4) | Inventory turnover | times | times | |||||||
(5) | Days in inventory | days | days | |||||||
(6) | Profit margin | % | % | |||||||
(7) | Asset turnover | times | times | |||||||
(8) | Return on assets | % | % | |||||||
(9) | Return on common stockholders equity | % | % | |||||||
(10) | Debt to assets ratio | % | % | |||||||
(11) | Times interest earned | times | times | |||||||
(12) | Free cash flow | $ | million | $ | million |
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