Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a re

Question

Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income $61,471 41,895 16,200 647 1,896 1,776 $ 2,849 $374,526 286,515 70,847 1,798 4,273 6,908 s12,731 Balance Sheet Data (End of Year) Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity $18,906 25,654 $44,560 $11,782 17,471 15,307 $44,560 $ 47,585 115,929 163,514 58,454 40,452 64,608 $163,514

Explanation / Answer

Target Wal-mart 1 Current Ratio                                                                       1.60                                                                       0.81 :1 2 Accounts Receivable Turn over                                                                       8.63                                                                  115.35 times 3 Average Collection Period                                                                       42.3                                                                       3.16 days 4 Inventory Turnover                                                                       6.43                                                                       8.32 times 5 Days in Inventory                                                                    56.77                                                                    43.87 days 6 Profit Margin                                                                       4.63                                                                       3.40 % 7 Asset turnover                                                                       1.02                                                                       1.82 times 8 Return on Asset (Investmet)                                                                       6.96                                                                       8.08 % 9 Return on equity                                                                    18.61                                                                    19.70 % 10 Debt to Assets ratio                                                                       0.66                                                                       0.60 % 11 Times interest Earned                                                                       3.40                                                                       6.08 times 1 Current Ratio 18906 / 11782 47585 / 58454 Current assets / Current liabilities                                                                       1.60                                                                       0.81 2 Accounts Receivable Turn Over 61471 / 7124 374526 / 3247 Sales / Avg Acount Receivables                                                                       8.63                                                                  115.35 3 Average Collection Period 365 / 8.63 365 / 115.35 365 / Receivable Turn over                                                                    42.29                                                                       3.16 4 Inventory Turnover 41895 / 6517 286515 /34433 Cost of Goods Sold / Avg Inventory                                                                       6.43                                                                       8.32 5 Days in inventory 365 / 6.43 365 / 8.32 365 / inventory Turn over                                                                    56.77                                                                    43.87 6 Profit margin 2849 / 61471 *100 12731 / 374526 *100 Net Income / Sales                                                                       4.63                                                                       3.40 7 Asset turnover 41895 / (44560 + 37349)/2 286515 /(163514+151587)/2 Cost of goods sold / Average Total Assets                                                                       1.02                                                                       1.82 8 Return on Asset (Investmet) 2849 / (44560 + 37349)/2 12731 / (163514+151587)/2 Net Income / Average Assets                                                                       6.96                                                                       8.08 9 Inventory Turnover 2849 / 15307 12731 / 64608 Net Income / Stock holders equity                                                                    18.61                                                                    19.70 10 Debt to Assets ratio (11782 + 17471) / 44560 (58454+40452) / 163514 Debt /Total assets                                                                       0.66                                                                       0.60 11 Time Interest earned (2849 -647) /647 (12731 - 1798) /1798 Operating Profit before interest / Interest                                                                       3.40                                                                       6.08

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