Question
walmart corporation is a rational retail departmant store . the company total revenue for the twelve months ended december31 2021 were $19 billion.fresfco is a
walmart corporation is a rational retail departmant store . the company total revenue for the twelve months ended december31 2021 were $19 billion.fresfco is a larger department store company with $26.1 billionof revenue for the same period
ratio walmart freshco
gross profit percentage 35% 39%
net profit margin 1.7% 2.6%
return on equity 5.9% 16.8%
EPS $3.27 $2.13
current ratio 1.68 1.31
debt to assets 0.64 0.82
P/E ratio 12.6 15.1
Required
1 which company appears more profitable? describe the ratio that you used to reach this decision
2. which company appears more liquid? describe the ratio that you used to reachthis decision
3 which company appears more solvent? describe the ratio that you used to reach this decision.
4. are the conclusions from your analysis in requirement 1-3 consistent with the value explanation for any apparent inconsistency.
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