Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions).

Instructions

(a) For each company, compute the following ratios.

(1) Current.

(2) Receivables turnover.

(3) Average collection period.

(4) Inventory turnover.

(5) Days in inventory.

(6) Profit margin.

(7) Asset turnover.

(8) Return on assets.

(9) Return on common stockholders’ equity.

(10) Debt to total assets.

(11) Times interest earned.

(b) Compare the liquidity, profitability, and solvency of the two companies.

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Target Corporation Income Statement Data for Year Wal-Mart Stores, Inc. Net sales $61,471 41,895 $374,526 286,515 70,847 1,798 4,273 6,908 Cost of goods sold Selling and administrative expenses 16,200 Interest expense Other income (expense) Income tax expense 647 1,896 1,776 $ 12,731 $ 2,849 Net income Balance Sheet Data (End of Year) $ 47,585 115,929 $18,906 Current assets Noncurrent assets 25,654 Total assets $44,560 $163,514 $ 58,454 40,452 $11,782 17,471 Current liabilities Long-term debt Total stockholders' equity 64,608 15,307 $44,560 $163,514 Total liabilities and stockholders' equity Beginning-of-Year Balances $37,349 15,633 $151,587 Total assets Total stockholders' equity 61,573 Current liabilities 11,117 21,716 52,148 Total liabilities 90,014 Other Data $ 3,247 $ 7,124 Average net receivables Average inventory Net cash provided by operating activities 6,517 4,125 34,433 20,354