Using the Consolidated Financial Statement provided for Wal-Mart, calculate return on common equity (ROCE) for fiscal X4
Fantastic news! We've Found the answer you've been seeking!
Question:
Using the Consolidated Financial Statement provided for Wal-Mart, calculate return on common equity (ROCE) for fiscal X4 and X7.
Identify, as far as allowed by the data, components driving any changes in ROCE from X4 to X7. (Disaggregate ROCE into net operating profit margin, net operating asset turnover and leverage.)
Transcribed Image Text:
Consolidated Statements of Operations Wal-Mart (in millions, except for per share data) Fiscal Year Ended 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan X2 X3 X4 X5 X6 X7 X8 Net sales $43,887 $55,484 $67,345 S82,494 $93,627 $104,859 Rentals from licensed dept. Other income, net 28 36 47 1,287 106,146 83,663 374 465 593 918 1,122 Total revenues 118,884 44,289 34,786 55,985 44,174 67,985 83,412 65,586 94,749 74,564 Cost of sales 53,444 Operating, selling, general & administrative Expenses Total operating expenses Operating income Interest costs Debt 6,684 41,470 2,819 10,333 16,788 100,451 5,695 8,321 12,858 52,495 3,490 78,444 4,968 14,951 89,515 5,234 63,777 4,208 6,378 113 143 331 520 692 629 Capital leases 153 180 186 186 196 216 266 323 517 706 888 845 930 Income before taxes 2,553 3,167 3,691 4,262 4,346 4,850 5,449 Income tax expense 1,974 (180) 1,794 $ 3,056 Current 906 1,137 1,572 1,530 1,325 33 Deferred 39 35 76 1,358 $ 2,333 945 1,172 $ 1,995 1,581 1,606 2,016 Net income $ 1,608 $ 2,681 $ 2,740 $3,433 EPS S0.70 $0.87 S1.02 $1.17 $1.19 $1.33 Dividends per share (for the whole year) $0.09 $0.11 SO. 13 $0.17 $0.20 $0.21 Consolidated Statements of Operations Wal-Mart (in millions, except for per share data) Fiscal Year Ended 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan X2 X3 X4 X5 X6 X7 X8 Net sales $43,887 $55,484 $67,345 S82,494 $93,627 $104,859 Rentals from licensed dept. Other income, net 28 36 47 1,287 106,146 83,663 374 465 593 918 1,122 Total revenues 118,884 44,289 34,786 55,985 44,174 67,985 83,412 65,586 94,749 74,564 Cost of sales 53,444 Operating, selling, general & administrative Expenses Total operating expenses Operating income Interest costs Debt 6,684 41,470 2,819 10,333 16,788 100,451 5,695 8,321 12,858 52,495 3,490 78,444 4,968 14,951 89,515 5,234 63,777 4,208 6,378 113 143 331 520 692 629 Capital leases 153 180 186 186 196 216 266 323 517 706 888 845 930 Income before taxes 2,553 3,167 3,691 4,262 4,346 4,850 5,449 Income tax expense 1,974 (180) 1,794 $ 3,056 Current 906 1,137 1,572 1,530 1,325 33 Deferred 39 35 76 1,358 $ 2,333 945 1,172 $ 1,995 1,581 1,606 2,016 Net income $ 1,608 $ 2,681 $ 2,740 $3,433 EPS S0.70 $0.87 S1.02 $1.17 $1.19 $1.33 Dividends per share (for the whole year) $0.09 $0.11 SO. 13 $0.17 $0.20 $0.21
Expert Answer:
Answer rating: 100% (QA)
Return on common equity ROCE is a measure that provides information on returns that common equity sh... View the full answer
Related Book For
Financial Statement Analysis and Security Valuation
ISBN: 978-0078025310
5th edition
Authors: Stephen Penman
Posted Date:
Students also viewed these accounting questions
-
From the following information, calculate the return on common equity for the year 2012 (amounts in millions of dollars). There were no share repurchases. Common stockholders' equity, December 31,...
-
Selected financial statement data from Texas Telecom, Inc., for Years 5 and 9 are reproduced below ($ millions): Required: a. Calculate return on common equity and disaggregate ROCE for Years 5 and 9...
-
a. A firm has a return on common equity of 13.4 percent, a net after-tax borrowing cost of 4.5 percent, and a return of 11.2 percent on net operating assets of $405 million. What is the firm's...
-
Identify the implied strategies that correspond with the Department of Veterans Affairs Healthcare System High Matrix Score on SWOT quadran that they might look like at your HSO. Also explain why...
-
Capture customer feedback concerning your project using the questions from Exhibit or other questions of your choice.
-
Productivity increases each year in the U.S. are a result of three factors: a) Labor, capital, management b) Engineering, labor, capital c) Engineering, capital, quality control d) Engineering,...
-
Following are observed frequencies. The null hypothesis is H0: p1 = 0.5, p2 = 0.3, p3 = 0.15, p4 = 0.05. a. Compute the expected frequencies. b. Compute the value of X2. c. How many degrees of...
-
A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.4 million per...
-
3. Dennis, age 25, needs lifetime life insurance protection. His agent showed him a chart displaying yearly renewable term premiums and level-premiums for the next ten years. The level premiums were...
-
Based on the information presented in the minicase, and the discussion in both Chapter 2 and this chapter, to what extent does Elon Musk fit the general charac- teristics of an entrepreneur and a...
-
BSC-It is important for healthcare leaders to link their departmental balanced scorecard (BSC) to a corporate BSC because it facilitates alignment with the overall strategic objectives of the...
-
When we think of natural disasters, we often assume that because it is 'natural' everyone is affected equally. Drawing on information regarding population growth and the material related to...
-
Harrison Inc has imported goods for $750000, The amount is payable after 3 months , it has also exported goods of $650000 and it is receivable in 4 months, for receivable amount a forward contract is...
-
Write a program that uses two identical arrays of just eight integers. It should display the contents of the first array, then call a function to sort the array using an ascending order bubble sort...
-
According to the documentary Drugs, Inc: Cocaine: What country consumes/sells most of the 42 tons of cocaine in the UK?
-
Harry and Meghans (H&Ms) is Canadas largest producer and exporter of maple syrup. Their operations are expanded, so they need to invest in more bottling equipment. Three different models are...
-
4. Write an ALP using the ARM instruction set to check if a number stored in a register is even or odd. If the stored number is even, store 00 in R0, else store FF in R0. 5. Based on the value of the...
-
Use the graphs of f and g to graph h(x) = (f + g) (x). To print an enlarged copy of the graph, go to MathGraphs.com. 1. 2. y 24 8. 2. -2 -2 4 6
-
a. XYZ Corporation had 158 million shares outstanding on January 1, 2012. On February 2, 2012, it issued an additional 30 million shares to the market at the market price of$55 per share. What was...
-
The shares of Nike, Inc., traded at $57.83 per share at the beginning of fiscal year 2010 and closed at $73.38 per share at the end of the year. Nike paid a dividend of$1.06 cents per share during...
-
An analyst presents you with the following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2013-2017. She asks you to value the 1,380 million shares...
-
Justify the statement: Osmosis is of paramount importance in biological systems.
-
The freezing point of pure benzene is \(5.44^{\circ} \mathrm{C}\) and that of the solution containing \(2.092 \mathrm{~g}\) of benzaldehyde in \(100 \mathrm{~g}\) of benzene is \(4.44^{\circ}...
-
The molality of dissolved gases in water at \(0^{\circ} \mathrm{C}\) and \(1 \mathrm{~atm}\) is \(1.29 \times 10^{-3}\). The decrease in volume during melting of ice is \(0.0907 \mathrm{cc} /...
Study smarter with the SolutionInn App