Question
THIS ASSIGNMENT IS BASED ON FORM 10-K WALGREENS BOOTS ALLIANCE, INC. FOR 2017. https://www.sec.gov/Archives/edgar/data/1618921/000161892117000069/wba-2017831x10k.htm#sD544AA1057C23391F01B25BC6265E816 Compute Ratios See specific details below. Based on formulas given, compute
THIS ASSIGNMENT IS BASED ON FORM 10-K WALGREENS BOOTS ALLIANCE, INC. FOR 2017.
https://www.sec.gov/Archives/edgar/data/1618921/000161892117000069/wba-2017831x10k.htm#sD544AA1057C23391F01B25BC6265E816
Compute Ratios See specific details below.
Based on formulas given, compute the following ratios in Excel for two years.
1. Current ratio: current assets/current liabilities
2. Debt ratio: total debt/total assets
3. Gross profit margin
4. Times interest earned: (Earnings before Interest & Taxes)/Interest Expense
5. Accounts receivable (AR) turnover: Net Credit Sales/Average AR Note: Av
6. Inventory turnover: Sales/Average Inventory Note: Average inventory = (
7. Return on Sales: Net Income (before interest & taxes)/Sales
8. Asset Turnover: Sales/average total assets
9. Return on Assets: net profit/average total assets
B. Prepare a DuPont Analysis of ROE for two years, including computations of
Return on Sales
Asset Turnover
Return on Assets
Financial Leverage
Return on Equity
C. Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is:
stronger / weaker
quicker /slower
more / less liquid
more / less risk
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