Integrative Case 4.1

PART A

a. What are the likely reasons for the changes in Walmart's rate of ROA during the three-year period? Analyze the financial ratios to the maximum depth possible.

b. What are the likely reasons for the changes in Walmart's rate of ROCE during the three-year period? Note: Requirements c and d require coverage of material from Chapter 5.

c. How has the short-term liquidity risk of Walmart changed during the three-year period?

d. How has the long-term solvency risk of Walmart changed during the three-year period?"

PART B

a. Walmart and Target follow somewhat different strategies. Using information in Exhibits 4.48 and4.51, suggest reasons for differences in operating profitability.

b. Walmart and Carrefour follow similar strategies, but Walmart consistently outperforms Carrefour on ROA. Using information in Exhibits 4.48 and 4.51, suggest reasons for these differences in operating profitability.

c. Refer to Exhibit 4.49. Which firm appears to have used financial leverage most effectively in enhancing the rate of ROCE? Explain your reasoning. Note: Requirements d and e require coverage of material from Chapter 5.

d. Refer to Exhibit 4.50. Rank-order these firms in terms of their short-term liquidity risk. Does any of these firms appear unduly risky as of the end of fiscal 2020? Explain.

e. Refer to Exhibit 4.50. Rank-order these firms in terms of their long-term liquidity risk. Does any of these firms appear unduly risky as of the end of fiscal 2020? Explain.