Walmart Stores Inc. and Target Corp. reported the following information in 2015 (excluding Target's discontinued operations):

________________________Walmart (in U.S. $ millions)_______Target (in U.S. $ millions)

Total assets, 2015..................................$203,706.....................................................$78,315

Total assets, 2014....................................204,751.......................................................79,651

Net sales, 2015........................................482,229.......................................................72,618

Net income, 2015......................................16,363.........................................................2,449

Industry averages were as follows: profit margin, 2.7%; asset turnover, 3.7 times; and return on assets, 10.0%.

Instructions

(a) For each company, calculate the

(1) Profit margin,

(2) Asset turnover, and

(3) Return on assets ratios for 2015.

(b) Based on your calculations in part (a), comment on how effectively each company is using its assets to generate sales and earn net income.

(c) What additional information about long-lived assets would assist you in your comparison of these two companies?