Ratio Analysis: Walmart vs. Target The spreadsheet file contains financial statement data (balance sheet followed by the

Fantastic news! We've Found the answer you've been seeking!

Question:

Ratio Analysis: Walmart vs. Target The spreadsheet file contains financial statement data (balance sheet followed by the income statement) for Walmart (ticker WMT) and Target (ticker: TGT. The main part of this assignment consists of performing trend ratio analysis on each company individually and comparison ratio analysis between Walmart and Target. A couple of notes regarding the financial statements. • Balance Sheet Notes: Net Property, Plant, and Equipment is Net (Tangible) Fixed Assets as described in the textbook. Payables in the Liabilities and Shareholder Equity section is Accounts Payable. • Income Statement Note: the negative amount for Net Interest Income is really each company’s Interest Expense for the year. The following list of items is to provide you guidance for your analysis. 1. Trend Analysis. Calculate all the financial ratio values for (fiscal years ending Jan. 3X of) 2009, 2010, 2011, 2012, and 2013 for both Walmart and Target for the ratios talked about in the class presentations. There are about 12-14 ratios. Group these by the four categories discussed: Liquidity, Asset Management, Debt, and Profitability. Do not worry about calculating any of the market ratios. What are the strengths and weaknesses of each company in your opinion? 2. Comparison Analysis. Compare and contrast each financial ratio of Walmart and Target, or vice versa. Which company do you think is managing each ratio better and each group of ratios better (liquidity, asset management, debt, and profitability)? Explain why. 3. DuPont Analysis. Break down each company’s Return on Equity, ROE, into the 3 part DuPont Equation for each year. Comment on what factors caused changes in each company’s ROE and caused one company’s ROE to be higher than the other over the time period.

use the infow below

BALANCE SHEET
Period Ending 30-Jan-16 31-Jan-15 1-Feb-14
Assets
Current Assets
Cash And Cash Equivalents 4,046,000 2,210,000 670,000
Short Term Investments - - -
Net Receivables - - -
Inventory 8,601,000 8,282,000 8,278,000
Other Current Assets 1,483,000 3,132,000 2,625,000
Total Current Assets 14,130,000 13,624,000 11,573,000
Long Term Investments - - -
Property Plant and Equipment 25,217,000 25,952,000 26,412,000
Goodwill - - -
Intangible Assets - - -
Accumulated Amortization - - -
Other Assets 915,000 1,596,000 6,568,000
Deferred Long Term Asset Charges - - -
Total Assets 40,262,000 41,172,000 44,553,000
Liabilities
Current Liabilities
Accounts Payable 11,654,000 11,542,000 10,945,000
Short/Current Long Term Debt 815,000 91,000 1,143,000
Other Current Liabilities 153,000 103,000 689,000
Total Current Liabilities 12,622,000 11,736,000 12,777,000
Long Term Debt 11,945,000 12,634,000 11,429,000
Other Liabilities 1,915,000 1,645,000 2,767,000
Deferred Long Term Liability Charges 823,000 1,160,000 1,349,000
Minority Interest - - -
Negative Goodwill - - -
Total Liabilities 27,305,000 27,175,000 28,322,000
Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 50,000 53,000 53,000
Retained Earnings 8,188,000 9,644,000 12,599,000
Treasury Stock - - -
Capital Surplus 5,348,000 4,899,000 4,470,000
Other Stockholder Equity -629,000 -599,000 -891,000
Total Stockholder Equity 12,957,000 13,997,000 16,231,000
Net Tangible Assets 12,957,000 13,997,000 16,231,000
INCOME STATEMENT
Period Ending 30-Jan-16 31-Jan-15 1-Feb-14
Total Revenue 73,785,000 72,618,000 71,279,000
Cost of Revenue 51,997,000 51,278,000 50,039,000
Gross Profit 21,788,000 21,340,000 21,240,000
Operating Expenses
Research Development - - -
Selling General and Administrative 14,665,000 14,676,000 14,465,000
Non Recurring - - -
Others 2,213,000 2,129,000 1,996,000
Total Operating Expenses - - -
Operating Income or Loss 4,910,000 4,535,000 4,779,000
Income from Continuing Operations
Total Other Income/Expenses Net 620,000 - 391,000
Earnings Before Interest And Taxes 5,530,000 4,535,000 5,170,000
Interest Expense 607,000 882,000 1,049,000
Income Before Tax 4,923,000 3,653,000 4,121,000
Income Tax Expense 1,602,000 1,204,000 1,427,000
Minority Interest - - -
Net Income From Continuing Ops 3,321,000 2,449,000 2,694,000
Non-recurring Events
Discontinued Operations 42,000 -4,085,000 -723,000
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 3,363,000 -1,636,000 1,971,000
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares 3,363,000 -1,636,000 1,971,000