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You are comparing the cash flow margins of two major retail chains, Walmart and Target, for the fiscal year ended December 31, 2023. Below are

You are comparing the cash flow margins of two major retail chains, Walmart and Target, for the fiscal year ended December 31, 2023. Below are the summarized cash flow data for both companies:

For Walmart:

  • Operating cash flow: $30 billion
  • Net sales revenue: $200 billion

For Target:

  • Operating cash flow: $20 billion
  • Net sales revenue: $150 billion

Requirements:

  1. Calculate the cash flow margin for both Walmart and Target.
  2. Compare the cash flow margins of Walmart and Target.
  3. Discuss the operational efficiency and cash flow generation capabilities of both companies based on their cash flow margins.

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