Question: Evaluate & explain Walmart's liquidity relative to Target using the following current ratios and inventory turnover, then compare both companies to the industry averages. Walmart:
- Evaluate & explain Walmart's liquidity relative to Target using the following current ratios and inventory turnover, then compare both companies to the industry averages.
- Walmart: Current ratio (company)= .79 current ratio (industry)= .98
Inventory Turnover (company)= 8.90 and (industry) 10.56
- Target: Current ratio (company)= .83 and (industry) 1.14
Inventory turnover (company)= 5.89 and (industry) 6.09
- Evaluate & explain Walmart's solvency relative to Target's using debts to equity ratio and quick ratio, then compare both companies to the industry averages.
- Walmart: debts to equity (company)= .64 & (industry)= 1.01
quick ratio (company)= .22 & (industry)= .98
- Target: debts to equity (company)= .91 & (industry)= .76
quick ratio (company)= .20 & (industry)= .70
- Evaluate & explain Walmart's profitability relative to Target's, using gross profit margin and net profit margin, then compare both companies to the industry averages.
- Walmart Gross Profit Margin (company)= 24.69 & (industry) 19.24
Net profit margin (company)= 2.90 & (industry)= 1.73
- Target Gross Profit Margin (company)= 29.27 & (industry) 31.50
Net profit margin (company)= 3.84 & (industry)= 3.51
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