Analyzing Long Term Debt and Calculating Appropriate Ratios
Retrieve the most recent 10 K filings for Kmart, Wal Mart, Gillette, and Mem Co. from the EDGAR archives (www.sec.gov/edaux/searches ). Examine the long term debt section of the Notes to the Financial Statements:
Required
a. Calculate the ratio of long term debt to total assets for each company for the last two years. Comment on any changes that you observe.
b. Analyze the long term debt for each company, using the following format:
|
Term to Maturity |
Interest Rates (Range) |
|
Due within one year |
|
|
Due in two years |
|
|
Due in three years |
|
|
Due in four years |
|
|
Due in five years and beyond |
|
c. Compare Kmart to Wal Mart. Which company obtained better terms from its lenders? Why?
d. Compare Gillette to Mem. Which company obtained better terms from its lenders? Why?