Selected hypothetical financial data of Target and Walmart for 2025 are presented here (in millions).

Instructions

a. For each company, compute the following ratios. Assume all sales were on credit.

1. Current ratio.

4. Inventory turnover.

2. Accounts receivable turnover.

5. Days in inventory.

3. Average collection period.

6. Profit margin.

7. Asset turnover.

8. Return on assets.

9. Return on common stockholders' equity.

10. Debt to assets ratio.

11. Times interest earned.

12. Free cash flow.

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

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Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Total assets Total stockholders' equity Current liabilities Total liabilities Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Cash dividends paid Target Corporation Income Statement Data for Year $408,214 304,657 79,607 $65,357 45,583 15,101 707 (94) 1,384 $ 2,488 $18,424 26,109 $44,533 $11,327 17,859 15,347 $44,533 Walmart Inc. Balance Sheet Data (End of Year) $ 48,331 122,375 $170,706 $ 55,561 44,089 71,056 $170,706 $44,106 13,712 10,512 30,394 Other Data 2,065 $7,525 6,942 5,881 1,729 496 (411) Beginning-of-Year Balances $163,429 65,682 55,390 97,747 7,139 $ 14,335 $ 4,025 33,836 26,249 12,184 4,217