Comment on the analytical results of the two companies based on your work in Excel.In addition to

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Question:

Comment on the analytical results of the two companies based on your work in Excel.In addition to contrasting the ratios between the companies, you should interpret the numbers and make suggestions as to why the ratio of one company might be higher or lower than the other.

WALMART then TARGET

Balance Sheet

Report Date	2022		2021		2020	2019
Scale	Thousands		Thousands		Thousands	Thousands
Cash & cash equivalents	8,625,000.00		14,760,000.00		17,741,000.00	9,465,000.00
Receivables, net	7,933,000.00		8,280,000.00		6,516,000.00	6,284,000.00
Inventories	56,576,000.00		56,511,000.00		44,949,000.00	44,435,000.00
Prepaid expenses & other current assets	2,521,000.00		1,519,000.00		20,861,000.00	1,622,000.00
Total current assets	75,655,000.00		81,070,000.00		90,067,000.00	61,806,000.00
Property & equipment, gross	202,370,000.00		189,324,000.00		180,571,000.00	195,028,000.00
Less: accumulated depreciation	101,610,000.00		94,809,000.00		88,370,000.00	89,820,000.00
Property & equipment, net	100,760,000.00		94,515,000.00		92,201,000.00	105,208,000.00
Operating lease right-of-use assets	13,555,000.00		13,758,000.00		13,642,000.00	17,424,000.00
Finance lease right-of-use assets, net	4,919,000.00		4,351,000.00		4,005,000.00	4,417,000.00
Goodwill	28,174,000.00		29,014,000.00		28,983,000.00	31,073,000.00
Other long-term assets	20,134,000.00		22,152,000.00		23,598,000.00	16,567,000.00
Total assets	243,197,000.00		244,860,000.00		252,496,000.00	236,495,000.00

Liability
Short-term borrowings	372,000.00		410,000.00		224,000.00	575,000.00
Accounts payable	53,742,000.00		55,261,000.00		49,141,000.00	46,973,000.00
Accrued liabilities	31,126,000.00		26,060,000.00		37,966,000.00	22,296,000.00
Accrued income taxes	727,000.00		851,000.00		242,000.00	280,000.00
Operating lease obligations due within one year	1,473,000.00		1,483,000.00		1,466,000.00	1,793,000.00
Long-term debt due within one year	4,191,000.00		2,803,000.00		3,115,000.00	5,362,000.00
Finance lease obligations due within one year	567,000.00		511,000.00		491,000.00	511,000.00
Total current liabilities	92,198,000.00		87,379,000.00		92,645,000.00	77,790,000.00
Long-term debt	34,649,000.00		34,864,000.00		41,194,000.00	43,714,000.00
Long-term operating lease obligations	12,828,000.00		13,009,000.00		12,909,000.00	16,171,000.00
Long-term finance lease obligations	4,843,000.00		4,243,000.00		3,847,000.00	4,307,000.00
Deferred income taxes & other liabilities	14,688,000.00		13,474,000.00		14,370,000.00	12,961,000.00
Redeemable noncontrolling interest	237,000.00		-		-	-
Total Liabilities	159,443,000.00		152,969,000.00		164,965,000.00	154,943,000.00

Stockholders' Equity
Common stock	269,000.00		276,000.00		282,000.00	284,000.00
Capital in excess of par value	4,969,000.00		4,839,000.00		3,646,000.00	3,247,000.00
Retained earnings (accumulated deficit)	83,135,000.00		86,904,000.00		88,763,000.00	83,943,000.00
Accumulated other comprehensive income (loss)	(11,680,000.00)		(8,766,000.00)		(11,766,000.00)	(12,805,000.00)
Noncontrolling interest	7,061,000.00		8,638,000.00		6,606,000.00	6,883,000.00
Total equity (deficit)	83,754,000.00		91,891,000.00		87,531,000.00	81,552,000.00



Additional Info

	2022		2021		2020	2019
Land	19,317,000.00		19,204,000.00		19,308,000.00	24,619,000.00
Buildings & improvements	104,554,000.00		100,376,000.00		97,582,000.00	105,674,000.00
Fixtures & equipment	65,235,000.00		60,282,000.00		56,639,000.00	58,607,000.00
Transportation equipment	2,462,000.00		2,263,000.00		2,301,000.00	2,377,000.00
Construction in progress	10,802,000.00		7,199,000.00		4,741,000.00	3,751,000.00

Net cash flows from operating activities	28,841,000		24,181,000		36,074,000	25,255,000
Net cash flows from investing activities	-17,722,000		-6,015,000		-10,071,000	-9,128,000
Net cash flows from financing activities	-17,039,000		-22,828,000		-16,117,000	-14,299,000



Income Statement

As Reported Annual Income Statement
Report Date	2022		2021		2020
Scale	Thousands		Thousands		Thousands
Net sales	605,881,000.00		567,762,000.00		555,233,000.00
Membership & other income	5,408,000.00		4,992,000.00		3,918,000.00
Total revenues	611,289,000.00		572,754,000.00		559,151,000.00
Cost of sales	463,721,000.00		429,000,000.00		420,315,000.00
Operating, selling, general & administrative expenses	127,140,000.00		117,812,000.00		116,288,000.00
Operating income (loss)	20,428,000.00		25,942,000.00		22,548,000.00
interest expense	2,128,000.00		1,994,000.00		2,315,000.00
Interest income	254,000.00		158,000.00		121,000.00
Other gains & (losses)	(1,538,000.00)		(5,410,000.00)		210,000.00
Income (loss) before income taxes	17,016,000.00		18,696,000.00		20,564,000.00
Provision (benefit) for income taxes	5,724,000.00		4,756,000.00		6,858,000.00
Consolidated net income (loss)	11,292,000.00		13,940,000.00		13,706,000.00
Consolidated net loss (income) attributable to noncontrolling interest	388,000.00		(267,000.00)		(196,000.00)
Consolidated net income (loss) attributable to Walmart Inc.	11,680,000.00		13,673,000.00		13,510,000.00



Ratio Analysis

Profitability Ratios	Formula	2020	2021	2022
Gross Profit Margin	Gross profit/Total Revenues x 100	4.03%	4.53%	3.34%
Profit Margin	Net Income/Total Revenues x 100	2.42%	2.39%	1.91%
Return on Assets	Net Income/Total Assets x 100	5.35%	5.58%	4.80%
Return on Equity	Net Income/Total equity x 100	15.43%	14.88%	13.95%

Productivity	Formula	2020	2021	2022
Inventory Turnover	Cost of Goods Sold/Average Inventory	9.40	8.46	8.20
Accounts receivable turnover	Total Revenues/Average accounts receivable	87.37	77.42	75.41
PPE Turnover	Total Revenues/Property,plant & Equipment net	6.06	6.06	6.07
Asset Turnover	Total Revenues/Average total Assets	2.29	2.30	2.50

Solvency	Formula	2020	2021	2022
Debt to equity	Total Liabilities/Total Equity	1.88	1.66	1.90
Times interest earned	Income before tax and interest/Interest Expenses	9.94	10.46	9.23
Return on Financial Leverage	Income before tax and interest/Income before tax	1.12	1.12	1.15

Liquidity	Formula	2020	2021	2022
Current Ratio	Current Assets/Current liabilities	0.97	0.93	0.82
Quick Ratio	(Current assets - Inventory)/Current liabilities	0.49	0.28	0.21
Operating Cash flow to current liabilities	Net cash flows from operating activites/current liabilities	0.39	0.28	0.31
Working Capital	Current Assets - Current Liabilties	(2,578,000.00)	(6,309,000.00)	(16,543,000.00)



Rough Work:
	Formula	2020	2021	2022
Average Inventory	(Inventory previous year + Inventory current year)/2	44,692,000.00	50,730,000.00	56,543,500.00
Average Accounts Receivable	(Accounts Receivable previous year + Accounts Receivable current year)/2	6,400,000.00	7,398,000.00	8,106,500.00
Average Total Assets	(Total Assests previous year + Total Assests current year)2	244,495,500.00	248,678,000.00	244,028,500.00
Income Before Tax and Interest	Income before tax + Interest	23,000,000.00	20,848,000.00	19,635,000.00

Balance Sheet

As Reported Annual Balance Sheet
Report Date	2022		2021		2020	2019
Currency	USD		USD		USD	USD
Scale	Millions		Millions		Millions	Millions
Cash & cash equivalents	2,229.00		5,911.00		8,511.00	2,577.00
Inventory	13,499.00		13,902.00		10,653.00	8,992.00
Accounts Receivable	1,695.00		1,353.00		1,135.00	962.00
Prepaid expenses	188.00		170.00		171.00	154.00
Other current assets	235.00		237.00		286.00	217.00
Total current assets	17,846.00		21,573.00		20,756.00	12,902.00
Property & equipment, net	31,512.00		28,181.00		26,879.00	26,283.00
Operating lease assets	2,657.00		2,556.00		2,227.00	2,236.00
Company-owned life insurance investments, net of loans	440.00		470.00		450.00	418.00
Goodwill & intangible assets	645.00		656.00		668.00	686.00
Other noncurrent assets	235.00		375.00		268.00	254.00
Total assets	53,335.00		53,811.00		51,248.00	42,779.00

Liability
Accounts payable	13,487.00		15,478.00		12,859.00	9,920.00
Accrued & other current liabilities	5,883.00		6,098.00		6,122.00	4,406.00
Current portion of long-term debt & other borrowings	130.00		171.00		1,144.00	161.00
Total current liabilities	19,500.00		21,747.00		20,125.00	14,487.00
Long-term debt & other borrowings	16,009.00		13,549.00		11,536.00	11,338.00
Noncurrent operating lease liabilities	2,638.00		2,493.00		2,218.00	2,275.00
Deferred income taxes	2,196.00		1,566.00		990.00	1,122.00
Other noncurrent liabilities	1,760.00		1,629.00		1,939.00	1,724.00
Total liabilities	42,103.00		40,984.00		36,808.00	30,946.00

Stockholders' Equity
Common stock	38.00		39.00		42.00	42.00
Additional paid-in capital	6,608.00		6,421.00		6,329.00	6,226.00
Retained earnings	5,005.00		6,920.00		8,825.00	6,433.00
Accumulated other comprehensive income (loss)	(419.00)		(553.00)		(756.00)	(868.00)
Total shareholders' Equity	11,232.00		12,827.00		14,440.00	11,833.00



Additional Info

	2022		2021		2020	2019
Land	6,231.00		6,164.00		6,141.00	6,036.00
Buildings & improvements	34,746.00		32,985.00		31,557.00	30,603.00
Fixtures & equipment	7,439.00		6,407.00		5,914.00	6,083.00
Computer hardware & software	3,039.00		2,505.00		2,765.00	2,692.00
Construction-in-progress	2,688.00		1,257.00		780.00	533.00
Accumulated depreciation	22,631.00		21,137.00		20,278.00	19,664.00

Net cash flows from operating activities	4,018		8,625		10,525	7,117
Net cash flows from investing activities	-5,504		-3,154		-2,591	-2,944
Net cash flows from financing activities	-2,196		-8,071		-2,000	-3,152



Income Statement

As Reported Annual Income Statement
Report Date	2022		2021		2020
Scale	Millions		Millions		Millions
Sales	107,588.00		104,611.00		92,400.00
Other revenue	1,532.00		1,394.00		1,161.00
Total revenue	109,120.00		106,005.00		93,561.00
Cost of sales	82,229.00		74,963.00		66,177.00
Selling, general & administrative expenses	20,658.00		19,752.00		18,615.00
Depreciation & amortization expenses (exclusive of depreciation included in cost of sales)	2,385.00		2,344.00		2,230.00
Operating income	3,848.00		8,946.00		6,539.00
Net interest income (expense)	(478.00)		(421.00)		(977.00)
Net other income (expense)	48.00		382.00		(16.00)
Earnings before income taxes	3,418.00		8,907.00		5,546.00
Provision for (benefit from) income taxes	638.00		1,961.00		1,178.00
Net earnings (loss)	2,780.00		6,946.00		4,368.00



Ratio Analysis

Profitability Ratios	Formula	2020	2021	2022
Gross Profit Margin	Gross profit/Total Revenues x 100	6.99%	8.44%	3.53%
Profit Margin	Net Income/Total Revenues x 100	4.67%	6.55%	2.55%
Return on Assets	Net Income/Total Assets x 100	8.52%	12.91%	5.21%
Return on Equity	Net Income/Total equity x 100	30.25%	54.15%	24.75%

Productivity	Formula	2020	2021	2022
Inventory Turnover	Cost of Goods Sold/Average Inventory	6.74	6.11	6.00
Accounts receivable turnover	Total Revenues/Average accounts receivable	89.23	85.21	71.60
PPE Turnover	Total Revenues/Property,plant & Equipment net	3.48	3.76	3.46
Asset Turnover	Total Revenues/Average total Assets	1.99	2.02	2.04

Solvency	Formula	2020	2021	2022
Debt to equity	Total Liabilities/Total Equity	2.55	3.20	3.75
Times interest earned	Income before tax and interest/Interest Expenses	-4.68	-20.16	-6.15
Return on Financial Leverage	Income before tax and interest/Income before tax	0.82	0.95	0.86

Liquidity	Formula	2020	2021	2022
Current Ratio	Current Assets/Current liabilities	1.03	0.99	0.92
Quick Ratio	(Current assets -Inventory)/Current liabilities	0.50	0.35	0.22
Operating Cash flow to current liabilities	Net cash flows from operating activites/current liabilities	0.52	0.40	0.21
Working Capital	Current Assets -Current Liabilties	631.00	(174.00)	(1,654.00)



Rough Work:
	Formula	2020	2021	2022
Average Inventory	(Inventory previous year + Inventory current year)/2	9,822.50	12,277.50	13,700.50
Average Accounts Receivable	(Accounts Receivable previous year + Accounts Receivable current year)/2	1,048.50	1,244.00	1,524.00
Average Total Assets	(Total Assests previous year + Total Assests current year)2	47,013.50	52,529.50	53,573.00
Income Before Tax and Interest	Income before tax + Interest	4,569.00	8,486.00	2,940.00