Question: Selected financial data for a recent year for two discount retail chains, Walmart Stores, Inc. and Costco Wholesale Corporation, are presented here (in U.S. $
Selected financial data for a recent year for two discount retail chains, Walmart Stores, Inc. and Costco Wholesale Corporation, are presented here (in U.S. $ millions, except for share price):
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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 (1.2:1)
3 Debt to total assets (74%)
4. Basic earnings per share (n/a)
5. Price-earnings ratio (26.4 times)
(b) Compare the liquidity, solvency, and profitability of the two companies and their industry.
Current assets Total assets Current liabilities Total liabilities Income available to common shareholders Share price Weighted average number of common shares Walmart Costco $60,239 $17,299 $199,581 $33,440o $64,619 $16,540 $115,970 $22,597 $14,694 $2,377 $65.39 $133.58 3,207 439
Step by Step Solution
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a in US millions Walmart Costco 1 Working capital 60239 64619 17 299 16540 4380 759 2 Current ratio ... View full answer
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