Question
Walmart Inc. provides the following financial information for the year ending December 31, 2023: Net Sales: $8,000,000 Cost of Goods Sold: $4,800,000 Operating Expenses: $2,000,000
Walmart Inc. provides the following financial information for the year ending December 31, 2023:
- Net Sales: $8,000,000
- Cost of Goods Sold: $4,800,000
- Operating Expenses: $2,000,000
- Net Income: $700,000
- Total Assets: $12,000,000
- Total Liabilities: $6,000,000
- Shareholders' Equity: $6,000,000
Required:
- Calculate the following financial ratios:
- Gross Profit Margin
- Operating Profit Margin
- Net Profit Margin
- Return on Assets (ROA)
- Return on Equity (ROE)
- Analyze the financial health of Walmart Inc. based on these ratios.
- Discuss the limitations of financial ratios in assessing the overall performance of a company.
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
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