2. Choose at least four financial ratios to analyze. At least one must come from each of the three dimensions: liquidity, solvency, and profitability (earnings per share cannot be chosen). List the ratios you have chosen. 3. Compute the ratios for the companies you have chosen for the most recent quarter for the current year and the same quarter for the prior year (i.e. quarter 3, 2020 and quarter 2, 2019). Clearly label the information and show your work. 4. Use horizontal analysis to compare each company's prior year with their own current year. Quantify both the changes of a few assets, liabilities and equity categories (i.e. current assets, long term liabilities, etc.) along with the change in the ratios you have chosen. Don't compare different companies to each other at this point. a. What were the changes since the last year? b. Which companies improved and which worsened? c. Use your understanding of financial ratios to explain how you know if a company improved or worsened. 5. Compare the companies' current year ratios to each other. If you had to choose one company to invest in, which would it be and why? WALMART INC., 10-Q filed on 12/2/2020 Quarterly Report Cover Financial Statements Notes to Financial Statements Accounting Policies Notes Tab Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions Oct. 31, 2020 Jan. 31, 2020 Oct. 31, 2019 Current assets: Cash and cash equivalents $ 14,325 $ 9,465 $ 8,606 Receivables, net 5.770 6,284 5,612 Inventories 51,842 44,435 51,546 Prepaid expenses and other 1,665 1,622 2,148 Total current assets 73,602 61,806 67.912 Property and equipment, net 102,232 105,208 104,326 Operating lease right-of-use assets 17,128 17,424 16,944 Finance lease right-of-use assets, net 4,929 4,417 4,155 Goodwill 30,236 31,073 30.716 Other long-term assets 22,736 16,567 15,777 Total assets 250,863 236,495 239,830 Current liabilities: Short-term borrowings 240 575 4.926 Accounts payable 54,152 46,973 49.750 Dividends payable 1,529 0 1,507 Accrued liabilities 24.995 22,296 20,973 Accrued income taxes 548 280 327 Long-term debt due within one year 4,358 5,362 4,093 Operating lease obligations due within one year 1,725 1,793 1.740 Finance lease obligations due within one year 574 511 468 Total current liabilities 88,121 77,790 83,784 Long-term debt 40,849 43,714 44,912 Long-term operating lease obligations 15,982 16,171 15,741 Long-term finance lease obligations 4,750 4,307 4,068 Deferred income taxes and other 13,657 12,961 13,018 Commitments and contingencies Equity: Common stock 283 284 284 Capital in excess of par value 3,485 3,247 3,091 Retained earnings 92,279 83,943 80,656 Accumulated other comprehensive loss (14,616) (12,805) (12,382) Total Walmart shareholders' equity 81,431 74,669 71,649 Noncontrolling interest 6,073 6,883 6,658 Total equity 87,504 81,552 78,307 Total liabilities and equity $ 250,863 $ 236,495 $ 239,830 NIKE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AUGUST 31, 2020 MAY 31, 2020 8,148 $ 1,332 3,813 6,705 1,939 21,937 4,969 3,158 272 223 2,699 33,258 $ 8,348 439 2.749 7,367 1,653 20,556 4,866 3,097 274 223 2,326 31,342 (in Millions) ASSETS Current assets: Cash and equivalents $ Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Operating lease right-of-use assets, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS $ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Curront portion of long-term debt Notes payable Accounts payable Current portion of operating lease liabilities Accrued liabilities Income taxes payable Total current liabilities Long-term debit Operating lease liabilities Deferred Income taxes and other liabilities Redeemable preferred stock Shareholders' equity Common stock at stated value Class A convertible-315 and 315 shares outstanding Class B - 1,250 and 1,243 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings (deficit) Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement 1 $ 137 1,963 459 5,742 297 8,619 9,408 2,961 3,046 3 248 2,248 445 5,184 156 8,284 9,406 2,913 2,684 3 8,695 (401) 927 9.224 33,258 $ 3 8,299 (56) (191) 8,055 31,342 CONDENSED CONSOLIDATED BALANCE SHEET MCDONALDS (unaudited) September 30, 2020 December 31, 2019 s 3,613.8 2.391.8 44.2 616.3 6,736.1 898.5 2,2242 50.2 385.0 3,557.9 1.283.3 2,715. 2,469.6 6,468.7 13.276.2 1,270.3 2,677.4 2,584,0 6,531.7 13,261.2 40,088.6 (15.870.3) 24.218.3 50.699.3 39,0509 (14,890.9) 24.160.0 47,510,8 $ $ In millions, except per share data Assets Current assets Cash and equivalents Accounts and notes receivable Inventories, at cost, not in excess of market Prepaid expenses and other current assets Total current assets Other assets Investments in and advances to affiliates Goodwill Miscellaneous Total other assets Lease right-of-use asset, net Property and equipment Property and equipment, at cost Accumulated depreciation and amortization Net property and equipment Total assets Liabilities and shareholders' equity Current liabilities Accounts payable Les liability Income taxes Other taxes Accrued interest Accrued payroll and other liabilities Current maturities of long-term debt Total current liabilities Long-term debt Long-term lease liability Long-term income taxes Deferred revenues - Initial franchise fees Other long-term liabilities Deferred Income taxes Shareholders' equity (deficit) Preferred stock, no par value, authorized - 165.0 million shares, issued - none Common stock, sot par value; authorized 3.5 billion shares, issued 1,660.6 million shares Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Common stock in treasury, at cost, 915.5 and 914.3 million shares Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 689.0 718.2 364.0 256.6 340.2 1,223.4 2.688.8 6.280.2 35,1434 12,736.0 1,957.3 679.8 951.5 1,423.2 988.2 6210 331.7 247.5 337.8 1,035.7 59,1 3,621.0 34,118.1 12,757.8 2,265.9 660.6 979.6 1,318.1 16.6 7,854.7 53,492.5 2,758.8) (67,077.1) (8,472.1) 50.699.3 16.6 7,653.9 52,930.5 (2,482.7) (66,328.6) (8.210.3) 47,510.8 S See Notes to condensed consolidated financial statements