Wal-Mart is one of the most dynamic companies in our economy. However, the compa

Question

Wal-Mart is one of the most dynamic companies in our economy. However, the company is being challenged in the market by new competitors. For the Wal-Mart Corporation, go online and find the annual report for the most recent year available.Based on the obtained annual report, complete the following table:

Ratio

Ratio

Formula Results Operating Profit Margin After Taxes Gross Profit Margin Average Collection Period Total Asset Turnover Fixed Asset Turnover Inventory Turnover Debt to Total Assets Times Interest Earned

Explanation / Answer

Wal-Mart Corporation Year 2016 :

Ratio Formula Calculation Operating Profit after taxes Net Income / Total revenues $15080m/$482130m = 3.12% Gross Profit margin ratio (Total sales - cost of sales) / Total sales (482130 - 360984) / 482130 = 25.13% Average collection period ending receivables * no. of days / Total revenues 5624 * 365 / 478614 = 4.29 days total assets turnover ratio Total revenues / total assets 482130 / 199581 = 2.42 times fixed assets turnover ratio Total revenues / Net fixed assets 482130 / 110171 = 4.38 times Inventory turnover ratio COS / Closing Inventory 360984/44469 = 8.12 times Debt / Total Assets Debt / Total Assets 64619 / 199581 = 0.32 Times Interest earned Operating Income / Financial obligation 24105 / 521 = 46.27 times

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