Selected financial data of Target and Wal-Mart for 2005 are presented here (in millions)
Corporation Stores, Inc.
Income Statement Data for Year
Net Sales $45,682 $285,222
Cost of goods sold 31,445 219,793
Selling and administrative expenses 10,480 51,354
Interest expense 570 986
Other income (expense) 1,157 2,767
Income tax expense 1,146 5,589
Net income $ 3,198 $ 10,267
Balance Sheet Data (End of Year)
Current assets $ 13,922 $ 38,491
Noncurrent assets 18,371 81,732
Total assets $ 32,293 $ 120,223
Total assets $31,416 $ 105,405
Total stockholders' equity 11,132 43,623
Current liabilities 8,314 40,364
Total liabilities 20,284 61,782
1.- For each company, compute the following ratios:
b. Receivables turnover.
c. Average collection period.
d. Inventory turnover.
e. Days in inventory.
f. Profit margin.
g. Asset turnover
h. Return on assets.
i. Return on common stockholders' equity
j. Debt to total assets.
k. Times interest earned.
2.- Compare the liquidity, solvency and profitability of the two companies.© BrainMass Inc. brainmass.com April 3, 2020, 7:56 pm ad1c9bdddf
The expert examines the analysis of Target and Wal-Mart to compute and compare ratios.