The purpose of this assignment is to evaluate the financial condition and performance of the firm you and your CLC group members have selected for analysis.

Refer to Tables A-1 through A-5 in Appendix II of the text for the operational definitions of and formulas for numerous common financial ratios, including profitability, liquidity, leverage, activity, and shareholders' return. Using these formulas, complete at least one ratio from each of the five categories, though you may apply as many of the ratios for which you can find the required information in the firm's financial reports. On your calculations page, specify for which formulas you are solving.

In an assessment of Walmart Financial Statement for Ratios.

1. Determine which of the ratios provide the most key insights into the firm's current level of performance. How can you assess whether the results of your calculations are positive or negative? Explain which of the ratios give you a reason to be concerned with the organization's current strategy and why.
2. The Organizational and Operational Plans assignment references the possible benefits and risks of forming a strategic alliance. What would be the risks of forming a strategic alliance in terms of the firm's profitability ratios? Which of those five ratios is most likely to reveal immediate information for analysis of the alliance's effectiveness?
3. Considering today's financial climate, how likely is it that the organization could acquire the capital necessary to support an aggressive value-enhancement strategy? From where would that capital originate? Compared to current interest rates, what do you believe is a realistic interest rate the firm might incur? Which of the liquidity ratios will be impacted by the influx of capital, if borrowed?

A-1 Profitability Ratios

1. Return in total assets

1. return on stockholders equity
2. operating profit margin
3. net profit margin

A-2 Liquidity Ratios

1. Current Ratio
2. Quick Ratio
3. investor to net working capital

A-3 Leverage Ratios

1. debt to assets
2. debt to equity
3. long term debt equity
4. fixed change coverage

A-4 Activity Ratios

1. inventory turnover
2. fixed assets turnover
3. total assets turnover
4. accounts receivable turnover
5. average collecting period

A-5 Shareholders return ratios

1. the dividend yield on common stock
2. price-earnings ratios
3. dividend payout ratio
4. cash flow per share