Question
This week we will begin working on our class project. Instead of a group project, you will each complete an individual financial analysis project. During
This week we will begin working on our class project. Instead of a group project, you will each complete an individual financial analysis project. During the next two weeks, you will explore the 2020 10-K for Walmart. You will use the 2020 10-K to compute the following financial ratios from chapter 17 for both companies: Current Ratio Acid Test Ratio Accounts Receivable Turnover Day's Sales Uncollected Inventory Turnover Day's Sales in Inventory Total Asset Turnover Return on Assets Debt to Equity Ratio Return on Stockholder's Equity Basic Earnings Per Share Gross Margin Ratio Dividend Yield Note: To obtain the numbers needed to calculate the balance sheet ratios, go the company website or the SEC website to download the 2020 10-K report. Another source would be MSNs MoneyCentral web site. Next, select Balance Sheet in the middle of the page. To get the most current stock price, click on Snapshot in the sidebar on the left of the screen. You will need to show all of your computations for each ratio. Your calculations MUST be done in an Excel worksheet and then copied and pasted into your Word document as an appendix. This will enable you to present the comparative ratios more easily in a side-by-side columnar format. Write a two to three-page paper explaining what you conclude about the health of the corporation based on your calculated ratios. The assignment must be submitted to the drop box in D2L by Monday, May 9, 2022 at 11:59pm without exception. Please be sure to submit work by the deadline. You will not have an additional opportunity to submit it once the deadline passes. Important Notes: Rather than explaining HOW the ratios are calculated, explain what each ratio indicates about the strength or weakness of the companies being compared. Although the two companies analyzed will be from different industries, your ratios will allow you to compare the relative performance of each despite their differences. Based on your analysis, conclude your paper by making a recommendation on which company is the best investment for a first time-stock buyer. Support your recommendation with sound explanations. Your 2-3 page write up is in addition to the required title page, reference page(s), or any appendices. Be sure to properly cite and reference your sources using APA format.
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