styles H A B 1 A. Using the Walmart financial data, calculate the following financial ratios: G 2 3 Walmart 4 2017 Industry average 2016 5 Profitability ratios 2015 2017 2016 2015 6 Gross profit margin 25.65% 25.13% 24,83% 7 Operating profit margin 52.70% 52.17% 51.65% 4,69% 5.00% 8 Net profit margin 5.59% 21.14% 20.93% 2.81% 20.72% 3.05% 9 Return on assets, ROA 3.37% 3.57% 3.53% 3.50% 6.86% 7.36% 8.03% 14.28% 10 Return on equity, ROE 14.00% 13.72% 17.54% 18.24% 20.10% 27.99% 27.16% 26.35% 11 Liquidity ratios 12 Current ratio 0.86 0.93 0.97 2.14 2.12 2.10 13 Quick ratio 0.22 0.24 0.28 0.58 0.57 0.57 14 Activity ratios 15 Asset turnover (typical) 2.44 2.42 2.38 4.00 3.96 3.92 16 Average collection period 4.38 4.26 5.09 5 5 5 17 Average payment period (approach 2) 59.80 55.59 54 86 40 40 40 18 Solvency/debt-management ratios 19 Debt to assets ratio 60.87% 59.64% 60,04% 30% 30% 29% 20 Debt to equity ratio 50.61% 54.21% 58.34% 59% 58% 58% 21 Financial leverage multiplier (FLM) 2.56 2.48 2.50 2 2. 2 22 Market ratios 23 PE ratio 22.55 15.12 12.14 27.90 24 20 21.50 24 Enterprise value ratio (using EBITDA) 0.00 0.00 0.00 21.3 19.00 17.45 25 26 B. Using the computed financial ratios, assess Walmart's strengths and weakness and provide your recommendations as to what the firm should 29 do to improve its performance in the future. 30 31 Strengths: 32 33 Inc St BS CF SE valuation data ratio analysis + f D 1 A. Using the Walmart financial data, calculate the following financial ratios G 2 3 Walmart 4 2017 Industry average 2016 5 Profitability ratios 2015 2017 2016 2015 6 Gross profit margin 25.65% 25.13% 7 Operating profit margin 24.83% 52.70% 52.17% 51.65% 4.69% 5.00% 8 Net profit margin 5.59% 21.14% 20.93% 20.72% 2.81% 3.05% 9 Return on assets, ROA 3.37% 3.57% 3.53% 3.SON 6.86% 7.36% 8.03% 14.28% 14.00% 10 Return on equity, ROE 13.72% 17.54% 18.24% 20.10% 27.99% 11 Liquidity ratios 27.16% 26.35% 12 Current ratio 0.86 0.93 0.97 2.14 2.12 13 Quick ratio 2.10 0.22 0.24 0.28 0.58 0.57 0.57 14 Activity ratios 15 Asset turnover (typical) 2.44 2.42 2.38 4.00 3.96 3.92 16 Average collection period 4.38 4.26 5.09 5 5 5 17 Average payment period (approach 2) 59.80 55.59 54.86 40 40 40 18 Solvency/debt-management ratios 19 Debt to assets ratio 60.87% 59.64% 60.04% 30% 30% 29% 20 Debt to equity ratio 50.61% 54.21% 58.34% 59% 58% 58% 21 Financial leverage multiplier (FLM) 2.56 2.48 2.50 2 2 2 22 Market ratios 23 PE ratio 22.55 15.12 12.14 27.90 24.20 21.50 24 Enterprise value ratio (using EBITDA) 0.00 0.00 0.00 21.3 19.00 17.45 25 26 B. Using the computed financial ratios, assess Walmart's strengths and weakness and provide your recommendations as to what the firm should 29 do to improve its performance in the future. 30 31 Strengths: 32 33 styles H A B 1 A. Using the Walmart financial data, calculate the following financial ratios: G 2 3 Walmart 4 2017 Industry average 2016 5 Profitability ratios 2015 2017 2016 2015 6 Gross profit margin 25.65% 25.13% 24,83% 7 Operating profit margin 52.70% 52.17% 51.65% 4,69% 5.00% 8 Net profit margin 5.59% 21.14% 20.93% 2.81% 20.72% 3.05% 9 Return on assets, ROA 3.37% 3.57% 3.53% 3.50% 6.86% 7.36% 8.03% 14.28% 10 Return on equity, ROE 14.00% 13.72% 17.54% 18.24% 20.10% 27.99% 27.16% 26.35% 11 Liquidity ratios 12 Current ratio 0.86 0.93 0.97 2.14 2.12 2.10 13 Quick ratio 0.22 0.24 0.28 0.58 0.57 0.57 14 Activity ratios 15 Asset turnover (typical) 2.44 2.42 2.38 4.00 3.96 3.92 16 Average collection period 4.38 4.26 5.09 5 5 5 17 Average payment period (approach 2) 59.80 55.59 54 86 40 40 40 18 Solvency/debt-management ratios 19 Debt to assets ratio 60.87% 59.64% 60,04% 30% 30% 29% 20 Debt to equity ratio 50.61% 54.21% 58.34% 59% 58% 58% 21 Financial leverage multiplier (FLM) 2.56 2.48 2.50 2 2. 2 22 Market ratios 23 PE ratio 22.55 15.12 12.14 27.90 24 20 21.50 24 Enterprise value ratio (using EBITDA) 0.00 0.00 0.00 21.3 19.00 17.45 25 26 B. Using the computed financial ratios, assess Walmart's strengths and weakness and provide your recommendations as to what the firm should 29 do to improve its performance in the future. 30 31 Strengths: 32 33 Inc St BS CF SE valuation data ratio analysis + f D 1 A. Using the Walmart financial data, calculate the following financial ratios G 2 3 Walmart 4 2017 Industry average 2016 5 Profitability ratios 2015 2017 2016 2015 6 Gross profit margin 25.65% 25.13% 7 Operating profit margin 24.83% 52.70% 52.17% 51.65% 4.69% 5.00% 8 Net profit margin 5.59% 21.14% 20.93% 20.72% 2.81% 3.05% 9 Return on assets, ROA 3.37% 3.57% 3.53% 3.SON 6.86% 7.36% 8.03% 14.28% 14.00% 10 Return on equity, ROE 13.72% 17.54% 18.24% 20.10% 27.99% 11 Liquidity ratios 27.16% 26.35% 12 Current ratio 0.86 0.93 0.97 2.14 2.12 13 Quick ratio 2.10 0.22 0.24 0.28 0.58 0.57 0.57 14 Activity ratios 15 Asset turnover (typical) 2.44 2.42 2.38 4.00 3.96 3.92 16 Average collection period 4.38 4.26 5.09 5 5 5 17 Average payment period (approach 2) 59.80 55.59 54.86 40 40 40 18 Solvency/debt-management ratios 19 Debt to assets ratio 60.87% 59.64% 60.04% 30% 30% 29% 20 Debt to equity ratio 50.61% 54.21% 58.34% 59% 58% 58% 21 Financial leverage multiplier (FLM) 2.56 2.48 2.50 2 2 2 22 Market ratios 23 PE ratio 22.55 15.12 12.14 27.90 24.20 21.50 24 Enterprise value ratio (using EBITDA) 0.00 0.00 0.00 21.3 19.00 17.45 25 26 B. Using the computed financial ratios, assess Walmart's strengths and weakness and provide your recommendations as to what the firm should 29 do to improve its performance in the future. 30 31 Strengths: 32 33