2. Select two liquidity ratios and two leverage ratios for balance sheet analysi

Question

2.  Select two liquidity ratios and two leverage ratios for balance sheet analysis of Walmart  that you think will be most effective.
3   Calculate the ratios for the last two years.

Assets


Fiscal year is February-January. All   values USD millions. 2009 2010 2011 Cash & Short Term Investments 7.28B 7.91B 7.4B Cash Only - 3.07B 1.7B Short-Term Investments - 4.84B 5.69B Total Accounts Receivable 3.91B 4.14B 5.09B Accounts Receivables, Net 3.91B 4.14B 5.09B Accounts Receivables, Gross 3.91B 4.14B 5.09B Bad Debt/Doubtful Accounts - - - Other Receivables 0 0 0 Inventories 34.51B 33.16B 36.32B Finished Goods 34.51B 33.16B 36.32B Work in Progress 0 0 0 Raw Materials 0 0 0 Progress Payments & Other 0 - - Other Current Assets 3.26B 3.12B 3.09B Miscellaneous Current Assets 3.26B 3.12B 3.09B Total Current Assets 48.95B 48.33B 51.89B
2009 2010 2011 Net Property, Plant & Equipment 95.65B 102.31B 107.88B Property, Plant & Equipment - Gross 131.16B 143.52B 154.49B Buildings 73.81B 77.45B 79.05B Land & Improvements 19.85B 22.59B 24.39B Computer Software and Equipment - - - Other Property, Plant & Equipment - 35.45B 38.29B Accumulated Depreciation 35.51B 41.21B 46.61B Total Investments and Advances 0 0 0 Other Long-Term Investments 0 0 0 Long-Term Note Receivable 0 0 0 Intangible Assets 15.26B 16.13B 16.76B Net Goodwill 15.26B 16.13B 16.76B Net Other Intangibles 0 0 0 Other Assets 3.37B 3.94B 4.13B Tangible Other Assets 0 3.94B 4.13B Total Assets 163.43B 175.41B 185.3B



Liabilities   & Shareholders' Equity






2009 2010 2011 ST Debt & Current Portion LT Debt 7.67B 4.92B 6.02B Short Term Debt 1.51B 523M 1.03B Current Portion of Long Term Debt 6.16B 4.4B 4.99B Accounts Payable 28.85B 30.45B 33.56B Income Tax Payable 701M 1.37B 157M Other Current Liabilities 18.17B 18.83B 18.75B Dividends Payable - - - Accrued Payroll 5.58B 5.99B 5.9B Miscellaneous Current Liabilities 12.59B 12.84B 12.85B Total Current Liabilities 55.39B 55.56B 58.48B Long-Term Debt 34.55B 36.4B 43.84B Long-Term Debt excl. Capitalized Leases 31.35B 33.23B 40.69B Non-Convertible Debt 31.35B 33.23B 40.69B Convertible Debt 0 0 0 Capitalized Lease Obligations 3.2B 3.17B 3.15B Provision for Risks & Charges 0 0 0 Deferred Taxes 2.87B 1.04B 1.7B Deferred Taxes - Credit 3.08B 5.74B 6.34B Deferred Taxes - Debit 202M 4.71B 4.64B Other Liabilities 2.94B 4.47B 4.99B Other Liabilities (excl. Deferred Income) 2.94B 4.47B 4.99B Deferred Income - - - Total Liabilities 95.95B 102.18B 113.65B Non-Equity Reserves 0 0 0 Preferred Stock (Carrying Value) 0 0 0 Redeemable Preferred Stock 0 0 0 Non-Redeemable Preferred Stock 0 0 0 Common Equity (Total) 65.29B 70.75B 68.54B Common Stock Par/Carry Value 393M 378M 352M Retained Earnings 63.66B 66.64B 63.97B ESOP Debt Guarantee 0 0 0 Cumulative Translation   Adjustment/Unrealized For. Exch. Gain (2.41B) - 1.29B Unrealized Gain/Loss Marketable   Securities 0 0 0 Revaluation Reserves 0 0 0 Treasury Stock 0 0 0 Total Shareholders' Equity 65.29B 70.75B 68.54B Accumulated Minority Interest 2.19B 2.49B 3.11B Total Equity 67.48B 73.24B 71.66B Liabilities & Shareholders' Equity 163.43B 175.41B 185.3B Copyright   2013 FactSet Research Systems Inc. All rights reserved. Source FactSet   Fundamentals. Accumulated Minority Interest 2.19B 2.49B 3.11B Total Equity 67.48B 73.24B 71.66B Liabilities & Shareholders' Equity 163.43B 175.41B 185.3B



Select two liquidity ratios and two leverage ratios for balance sheet analysis of Walmart that you think will be most effective. Calculate the ratios for the last two years.

Explanation / Answer

2.Two Liquidity ratios are acid-test ratio and currrent ratio.

two leverage ratio are Debt-equity ratio and Debt ratio.

3.currrent ratio= current asset/current liability

2009= 48.95/55.39=0.8837

2010=48.33/55.56=0.869

Quick ratio

2009=14.44/55.39=0.26

2010=15.17/55.56=0.273

Debt -equity ratio

2009=95.95/67.48=1.422

2010=102.18/73.24=1.395

Debt ratio

2009=95.95/163.43=0.587

2010=102.18/175.41=0.582

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