1. find liquidity ratios for 2020 and 2019 and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable.

2.find profitability ratios for 2020 and 2019, and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable.

 

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FINANCIAL HISTORY (In millions, except per share data and financial ratios) 2020 2019 2018 2017 2016 Year Ended May 31, Revenues(1) $ 37,403 $ 39,117 $ 36,397 $ 34,350 $ 32,376 Gross profit 16,241 17,474 15,956 15,312 14,971 Gross margin(1) 43.4% 44.7% 43.8% 44.6% 46.2% Net income(1)(2) 2,539 4,029 1,933 4,240 3,760 Earnings per common share:(2) Basic 1.63 2.55 1.19 2.56 2.21 Diluted 1.60 2.49 1.17 2.51 2.16 Weighted average common shares outstanding 1,558.8 1,579.7 1,623.8 1,657.8 1,697.9 Diluted weighted average common shares outstanding 1,591.6 1,618.4 1,659.1 1,692.0 1,742.5 Cash dividends declared per common share 0.955 0.86 0.78 0.70 0.62 Cash provided (used) by operations(1) 2,485 5,903 4,955 3,846 3,399 At May 31, Cash and equivalents(3) $ 8,348 $ 4,466 $ 4,249 $ 3,808 $ 3,138 Short-term investments 439 197 996 2,371 2,319 Inventories(1) 7,367 5,622 5,261 5,055 4,838 Working capital 12,272 8,659 9,094 10,587 9,667 Operating lease right-of-use assets, net(4) 3,097 Total assets(4X5)(6) 31,342 23,717 22,536 23,259 21,379 Long-term debt(3) Total operating lease liabilities(4) 9,406 3,464 3,468 3,471 1,993 3,358 Redeemable preferred stock Shareholders' equity(6) 0.3 0.3 0.3 0.3 0.3 8,055 9,040 9,812 12,407 12,258 Market capitalization 153,553 120,951 114,983 87,084 92,867 Financial Ratios: Return on equity(2)(6) 29.7% 42.7% 17.4% 34.4% 30.1% Return on assets(2)(3)(4)(5)(6) 9.2% 17.4% 8.4% 19.0% 17.5% Inventory turns Current ratio at May 31(3)(4) 3.3 4.0 4.0 3.8 3.8 2.5 2.1 2.5 2.9 2.8 Price/Earnings ratio at May 31(2) 61.6 31.0 61.4 21.1 25.6 FINANCIAL HISTORY (In millions, except per share data and financial ratios) 2020 2019 2018 2017 2016 Year Ended May 31, Revenues(1) $ 37,403 $ 39,117 $ 36,397 $ 34,350 $ 32,376 Gross profit 16,241 17,474 15,956 15,312 14,971 Gross margin(1) 43.4% 44.7% 43.8% 44.6% 46.2% Net income(1)(2) 2,539 4,029 1,933 4,240 3,760 Earnings per common share:(2) Basic 1.63 2.55 1.19 2.56 2.21 Diluted 1.60 2.49 1.17 2.51 2.16 Weighted average common shares outstanding 1,558.8 1,579.7 1,623.8 1,657.8 1,697.9 Diluted weighted average common shares outstanding 1,591.6 1,618.4 1,659.1 1,692.0 1,742.5 Cash dividends declared per common share 0.955 0.86 0.78 0.70 0.62 Cash provided (used) by operations(1) 2,485 5,903 4,955 3,846 3,399 At May 31, Cash and equivalents(3) $ 8,348 $ 4,466 $ 4,249 $ 3,808 $ 3,138 Short-term investments 439 197 996 2,371 2,319 Inventories(1) 7,367 5,622 5,261 5,055 4,838 Working capital 12,272 8,659 9,094 10,587 9,667 Operating lease right-of-use assets, net(4) 3,097 Total assets(4X5)(6) 31,342 23,717 22,536 23,259 21,379 Long-term debt(3) Total operating lease liabilities(4) 9,406 3,464 3,468 3,471 1,993 3,358 Redeemable preferred stock Shareholders' equity(6) 0.3 0.3 0.3 0.3 0.3 8,055 9,040 9,812 12,407 12,258 Market capitalization 153,553 120,951 114,983 87,084 92,867 Financial Ratios: Return on equity(2)(6) 29.7% 42.7% 17.4% 34.4% 30.1% Return on assets(2)(3)(4)(5)(6) 9.2% 17.4% 8.4% 19.0% 17.5% Inventory turns Current ratio at May 31(3)(4) 3.3 4.0 4.0 3.8 3.8 2.5 2.1 2.5 2.9 2.8 Price/Earnings ratio at May 31(2) 61.6 31.0 61.4 21.1 25.6

Answer rating: 100% (QA)

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