Question: Selected financial data for a recent year for two discount retail chains, Walmart Stores, Inc. and Target Corporation, are presented here (in U.S. $ millions,

Selected financial data for a recent year for two discount retail chains, Walmart Stores, Inc. and Target Corporation, are presented here (in U.S. $ millions, except for share price):

Instructions
(a) For each company, calculate the following values and ratios. Where available, industry averages have been included in parentheses.
1. Working capital (n/a)
2. Current ratio (1.8:1)
3. Debt to total assets (16.9%)
4. Earnings per share (n/a)
5. Price-earnings ratio (18.6 times)
(b) Compare the liquidity, solvency, and profitability of the two companies and their industry.

Current assets Total assets Current liabilities Total liabilities Profit available to common shareholders Share price Weighted average number of common shares Walmart S59,940 203,105 71,818 121,367 16,999 69.95 3,374 Target $16,388 48,163 14,031 31,605 2,999 61.15 657

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a in USD millions Walmart Target 1 Working capital 59940 71818 16388 14031 11878 2357 2 Current rati... View full answer

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