Selected financial data of Target and Wal Mart for 2006 are presented here (in millions).
|
Target |
Wal Mart |
|
|
Income Statement Data for Year |
||
|
Net sales |
$57,878 |
$348,650 |
|
Cost of goods sold |
39,399 |
264,152 |
|
Selling and administrative expenses |
14,315 |
64,001 |
|
Interest expense |
572 |
1,809 |
|
Other income (expense) |
905 |
(1,039) |
|
Income tax expense |
1,710 |
6,365 |
|
Net income |
$ 2,787 |
$ 11,284 |
|
Balance Sheet Data (End of Year) |
||
|
Current assets |
$14,706 |
$ 46,588 |
|
Noncurrent assets |
22,643 |
104,605 |
|
Total assets |
$37,349 |
$151,193 |
|
Current liabilities |
$11,117 |
$ 51,754 |
|
Long term debt |
10,599 |
37,866 |
|
Total stockholders’ equity |
15,633 |
61,573 |
|
Total liabilities and stockholders’ equity |
$37,349 |
$151,193 |
|
Beginning of Year Balances |
||
|
Total assets |
$34,995 |
$138,187 |
|
Total stockholders’ equity |
14,205 |
53,171 |
|
Current liabilities |
9,588 |
48,825 |
|
Total liabilities |
20,790 |
85,016 |
|
Other Data |
||
|
Average net receivables |
$ 5,930 |
$ 2,707 |
|
Average inventory |
6,046 |
32,797 |
|
Net cash provided by operating activities |
4,862 |
20,209 |
|
Capital expenditures |
3,928 |
15,666 |
|
Dividends |
380 |
2,802 |
Instructions
(a) For each company, compute the following ratios.
(1) Current.
(2) Receivables turnover.
(3) Average collection period.
(4) Inventory turnover.
(5) Days in inventory.
(6) Profit margin.
(7) Asset turnover.
(8) Return on assets.
(9) Return on common stockholders’ equity.
(10) Debt to total assets.
(11) Times interest earned.
(12) Current cash debt coverage.
(13) Cash debt coverage.
(14) Free cash flow.
Financial Reporting and Analysis