TREND ANALYSIS ON THE FINANCIAL RATIOS
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( Liquidity & Asset Utilization Ratios Sears (SHLD) This Year Last Year Walmart (WMT) This Year Last Year
Current Ratio
Current Assets $15,207,000.00 $7,541,000.00 38,491,000.00 34,421,000.00
Current Liabilities $10,350,000.00 1.47 $2,086,000.00 3.62 42,888,000.00 0.90 37,840,000.00 0.91
Quick (Acid-Test) Ratio
Current Assets-Inventory $9,068,000.00 $3,281,000.00 32,191.00 29,762.00
Current Liabilities $10,350,000.00 0.88 $2,086,000.00 1.57 48,826.00 0.66 43,182.00 0.69
Inventory Turnover
Cost of Goods Sold
Average Inventory #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Average Collection Period
Accounts Receivable
Average Daily Sales #DIV/0! #DIV/0! Days #DIV/0! #DIV/0!
Total Asset Turnover
Sales 49,124,000.00 1,106,000.00 285,222,000.00 256,329,000.00
Total Assets 30,573,000.00 1.61 19,701,000.00 0.06 120,223,000.00 2.37 105,405,000.00 2.43
Debt & Interest Coverage Ratios
Debt to Assets Ratio
Total Liabilities
Total Assets #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Debt to Equity Ratio
Total Debt 4,016,000.00 4.00 23,846,000.00 20,006,000.00
Total Equity 11,611,000.00 0.35 367.00 0.01 49,396,000.00 0.48 43,623,000.00 0.46
Interest Coverage Ratio
EBIT(Earnings Before Interest & Taxes) 1,879 875,000 285,222,000.00 256,329,000.00
Interest Expense 237 7.93 108,000 8.10 1,163,000.00 245.25 1,024,000.00 250.32
Profitability Ratios
Gross Margin on Sales
Sales-Cost of Sales
Sales #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Net Profit Margin
Net Profit after taxes 858,000.00 1,106,000.00 10,267,000.00 9,054,000.00
Sales 49,124,000.00 1.7% 19,701,000.00 5.6% 285,222,000.00 3.6% 256,329,000.00 3.5%
Market Based Ratio
Price-Earnings Ratio
Current Market Value of Common Stock 55.15 46.80
Earnings Per Share (EPS) #DIV/0! #DIV/0! 0.62 88.95 0.62 75.48
Addition to list
Return on equity - ROE
Net Income 858,000.00 1,106,000.00 10,267,000.00 9,054,000.00
Share Holders Equity 11,611,000.00 0.07 11,611,000.00 0.10 49,396,000.00 0.21 43,623,000.00 0.21
Return on assets - ROA
Net Income - Interest expense 1,095,000.00 1,214,000.00 11,430,000.00 10,099,000.00
Total assets 30,573,000.00 0.04 8,651,000.00 0.14 120,223,000.00 0.10 105,405,000.00 0.96
PLEASE PERFORM A TREND ANALYSIS ON THE ABOVE FINANCIAL RATIOS, ALSO COMPARE AND CONTRAST THE FINDINGS.
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Solution Summary
This provides the steps of TREND ANALYSIS ON THE FINANCIAL RATIOS
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Liquidity & Asset Utilization Ratios Sears (SHLD) This Year Last Year Walmart (WMT) This Year Last Year
Current Ratio
Current Assets $15,207,000.00 $7,541,000.00 38,491,000.00 34,421,000.00
Current Liabilities $10,350,000.00 1.47 $2,086,000.00 3.62 42,888,000.00 0.90 37,840,000.00 0.91
Quick (Acid-Test) Ratio
Current Assets-Inventory $9,068,000.00 $3,281,000.00 32,191.00 29,762.00
Current Liabilities $10,350,000.00 0.88 $2,086,000.00 1.57 48,826.00 0.66 43,182.00 0.69
Inventory Turnover
Cost of Goods Sold
Average Inventory #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Average ...
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