You are recently employed as a graduate consultant in a management consultancy firm. One of your firms clients is currently evaluating its information systems,

Required

Based on Fiscal year 2020. Please

You are required to prepare to answer and to evaluate and recommend for Walmart company.

c1. Management Consultant: Net Profit Margin

c2. Loan Officer: Debt Ratio

c3. Financial Advisor: Price/Earnings Ratio

PLEASE ANSWER THE QUESTION IN THIS ORDER FOR EACH ROLE:

C1, C2, C3 in this order:

1. Define the ratio

2. Explain why it is important to the user of financial users

3. List the ratio formula and prepare the calculation

4. Analyze the results of the calculation. Was it good or bad?

5. Provide one recommendation for important

Walmart Inc. (Filer).CIK: 0000104169 Print Document View Excel Document 10-K Jan. 31, 2021 Jan. 31, 2020 Cover Cover Page Financial Statements Consolidated Statements of Income $ 17,741 6,516 44,949 20,861 90,067 92,201 13,642 4,005 28,983 23,598 252,496 $ 9,465 6,284 44,435 1,622 61,806 105,208 17,424 4,417 31,073 16,567 236,495 Consolidated Statements of Comprehensive Income Consolidated Balance Sheets Consolidated Statements Of Shareholders' Equity Consolidated Statements Of Shareholders' Equity (Parenthetical) Consolidated Balance Sheets - USD ($) $ in Millions Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Goodwill Other long-term assets Total assets Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating lease obligations due within one year Finance lease obligations due within one year Total current liabilities Long-term debt Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity Total liabilities and equity 224 49,141 37,966 242 3,115 575 46,973 22,296 280 5,362 Consolidated Statements of Cash Flows 1,466 1,793 Notes to Financial Statements 491 511 Accounting Policies Notes Tables 92,645 41,194 12,909 3,847 14,370 77,790 43,714 16,171 4,307 12,961 Notes Details All Reports 282 3,646 88,763 (11,766) 80,925 6,606 87,531 $ 252,496 284 3,247 83,943 (12,805) 74,669 6,883 81,552 $ 236,495 Walmart Inc. (Filer).CIK: 0000104169 Print Document View Excel Document 10-K Cover Cover Page Financial Statements Consolidated Statements of Income Consolidated Statements of Comprehensive Income Consolidated Balance Sheets Consolidated Statements Of Shareholders' Equity Consolidated Statements Of Shareholders' Equity (Parenthetical) Consolidated Statements of Income 12 Months Ended USD ($) shares in Millions, $ in Millions Jan. 31, 2021 Jan. 31, 2020 Jan. 31, 2019 Revenues: Net sales $ 555,233 $ 519,926 $ 510,329 Membership and other income 3,918 4,038 4,076 Total revenues 559,151 523,964 514,405 Costs and expenses: Cost of sales 420,315 394,605 385.301 Operating, selling, general and 116,288 108,791 107,147 administrative expenses Operating income 22,548 20,568 21,957 Interest: Debt 1,976 2,262 1,975 Finance, capital lease and financing 339 337 371 obligations Interest income (121) (189) (217) Interest, net 2,194 2,410 2,129 Other (gains) and losses (210) (1,958) 8,368 Income before income taxes 20,564 20,116 11,460 Provision for income taxes 6,858 4,915 4,281 Consolidated net income 13,706 15,201 7,179 Consolidated net income attributable to (196) (320) (509) noncontrolling interest Consolidated net income attributable to $ 13,510 Walmart $ 14,881 $ 6,670 Net income per common share: Basic net income per common share $ 4.77 $ 5.22 $ 2.28 attributable to Walmart (in USD per share) Diluted net income per common share $ 4.75 $ 5.19 $ 2.26 attributable to Walmart (in USD per share) Weighted average common shares outstanding: Basic (in shares) 2,831 2,850 2,929 Diluted (in shares) 2,847 2,868 2,945 Dividends declared per common share in $ 2.16 $ 2.12 $ 2.08 USD per share) Consolidated Statements of Cash Flows Notes to Financial Statements Accounting Policies Notes Tables Notes Details All Reports