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:

  1. 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

  1. 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

  1. 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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