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    Analysis of Target and Wal-Mart: compute and compare ratios

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    Assignment 5

    Selected financial data of Target and Wal-Mart for 2005 are presented here (in millions)

    Target Wal-Mart
    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

    Current liabilities $ 8,220 $ 42,888
    Long-term debt 11,044 27,939
    Total stockholders' equity 13,029 49,396
    Total liabilities and stockholders' equity $ 32,293 $ 120,223

    Beginning-of-Year Balances

    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

    Other Data

    Average net receivables $ 4,845 $ 1,485
    Average inventory 4,958 28,030
    Net cash provided by operating activities 3,821 15,044

    Instructions:
    1.- For each company, compute the following ratios:

    a. Current.
    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.

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    https://brainmass.com/business/business-management/analysis-target-walmart-compute-compare-ratios-289475

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    The expert examines the analysis of Target and Wal-Mart to compute and compare ratios.

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