Financial Statement Analysis Project:

To complete this project, you will need to find online the 2022 annual reports of Walmart and Target, one of Walmarts competitors.

Questions	Answers
Part 1	Which financial statement would you use to assess Walmarts financial position?
List ratios you would use to assess Walmarts liquidity?
List ratios you would use to assess Walmarts solvency?
Part 2	Which financial statement would you use to assess Walmarts profitability?
List ratios you would use to assess Walmarts profitability
Part 3	Which financial statement shows Walmarts ability to generate cash flows?
In 2022, how much cash did Walmart generate from its operations?
Were the cash flows generated from operations enough to pay for property and equipment in 2022?
Part 4	What inventory costing method did Walmart use in 2022?
Summarize Walmarts depreciation policy for property and equipment
Part 5	Compute three of the liquidity ratios you listed above for Walmart for 2022 and 2021: 2022 2021 Discuss Walmarts liquidity ratios
Compute three of the solvency ratios you identified in Part 1 for Walmart 2022 and 2021: 2022 2021 Discuss Walmarts solvency ratios
Compute three profitability ratios you identified above for Walmart for 2022 and 2021: 2022 2021 Discuss Walmarts profitability ratios. Is Walmart more profitable in 2022
Part 6	Compute the profitability ratios for Target 2022 2021
Compare Walmart to Target. Which company is more profitable?
Compare the changes in stock prices in the last year between the two companies. Are changes in stock price consistent with the difference in profitability?