Financial Analysis Summary: Section 9 should be a minimum of 800–1000 words, not counting titles, abstract and references. In this unit all files for the financial analysis report from Units 1, 3, and 5 should be submitted.
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richardhairston1_GM506unit3assignment2.xlsWMT TGT Income Statements
| Walmart Income Statement | Target Income Statement | ||||
| 1/31/17 | 1/28/17 | ||||
| Total Revenue | 485,873,000 | Total Revenue | 69,495,000 | ||
| Cost of Goods Sold | 361,256,000 | Cost of Goods Sold | 48,872,000 | ||
| Gross Profit | 124,617,000 | Gross Profit | 20,623,000 | ||
| Selling General and Administrative | 101,853,000 | Selling General and Administrative | 13,356,000 | ||
| Operating Income or Loss | 22,764,000 | Others | 2,298,000 | ||
| Total Other Income/Expenses Net | 100,000 | Operating Income or Loss | 4,969,000 | ||
| Earnings Before Interest and Taxes | 22,864,000 | Earnings Before Interest and Taxes | 4,969,000 | ||
| Interest Expense | 2,367,000 | Interest Expense | 1,004,000 | ||
| Income Before Tax | 20,497,000 | Income Before Tax | 3,965,000 | ||
| Income Tax Expense | 6,204,000 | Income Tax Expense | 1,296,000 | ||
| Minority Interest | 2,737,000 | Net Income From Continuing Ops | 2,669,000 | ||
| Net Income From Continuing Ops | 14,293,000 | Discontinued Operations | 68,000 | ||
| Net Income | 13,643,000 | Net Income | 2,737,000 |
You will find the WMT TGT Balance Sheet dat a is in tab below: Income Statement data is shown on this above/page.
WMT TGT Balance Sheets
| Walmart Balance Sheet | Target Balance Sheet | |||
| Period Ending | 1/31/17 | Period Ending | 1/28/17 | |
| Current Assets | Current Assets | |||
| Cash And Cash Equivalents | 6,867,000 | Cash And Cash Equivalents | 2,512,000 | |
| Accounts Receivable | 5,835,000 | Inventory | 8,309,000 | |
| Inventory | 43,046,000 | Accounts Receivable | 1,169,000 | |
| Other Current Assets | 1,941,000 | Other Current Asssets | 0 | |
| Total Current Assets | 57,689,000 | Total Current Assets | 11,990,000 | |
| Property Plant and Equipment | 114,178,000 | Property Plant and Equipment | 24,658,000 | |
| Goodwill | 17,037,000 | Goodwill | 0 | |
| Other Assets | 9,921,000 | Other Assets | 783,000 | |
| Total Assets | 198,825,000 | Total Assets | 37,431,000 | |
| Current Liabilities | Current Liabilities | |||
| Accounts Payable | 63,008,000 | Accounts Payable | 10,989,000 | |
| Short/Current Long Term Debt | 3,920,000 | Short/Current Long Term Debt | 1,718,000 | |
| Other Current Liabilities | 0 | Other Current Liabilities | 1,000 | |
| Total Current Liabilities | 66,928,000 | Total Current Liabilities | 12,708,000 | |
| Long Term Debt | 42,018,000 | Long Term Debt | 11,031,000 | |
| Deferred Long Term Liability Charges | 9,344,000 | Other Liabilities | 1,878,000 | |
| Minority Interest | 2,737,000 | Deferred Long Term Liability Charges | 861,000 | |
| Total Liabilities | 121,027,000 | Total Liabilities | 26,478,000 | |
| Common Stock | 305,000 | Common Stock | 46,000 | |
| Retained Earnings | 89,354,000 | Retained Earnings | 5,884,000 | |
| Capital Surplus | 2,371,000 | Capital Surplus | 5,661,000 | |
| Other Stockholder Equity | -14,232,000 | Other Stockholder Equity | -638,000 | |
| Total Stockholder Equity | 77,798,000 | Total Stockholder Equity | 10,953,000 |
Be sure to scroll down for all data
Ratio Analysis
| Name: | Unit 3 Assignment 2 | ||||
| Financial Analysis Wal-Mart vs. Target: The Basis for your Ongoing Analysis (Step 8 to support Step 9) | |||||
| Financial diagnostic categories | Ratio | WalMart | Target | Commentary, which company is 'better' and why | Be sure to use the worksheet with the formulas |
| 1.) Liquidity Management | -Current ratio | 0.8620 | 0.9435 | Notes here: Target had a better liquidity in comparison to Walmart. Target had better current ratio, cash ratio and quick ratio. The company has a better ability in making payment of its short term liabilities. | ca/cl |
| -Cash ratio | 0.1026 | 0.1977 | cash/CL | ||
| -Quick ratio | 0.2188 | 0.2897 | (ca -inv)/cl | ||
| 2.) Debt Management | Debt/Assets | 0.6087 | 0.7074 | Notes here: Walmart has better debt to assets, debt to equity and interest coverage ratio. . This shows that Walmart has better long term debt management in comparison to Target. The company has less long term debt in comparison to Target. | d/a |
| Debt/Equity | 1.5557 | 2.4174 | d/e | ||
| EBIT/Interest | 9.6595 | 4.9492 | ebit/interest | ||
| 3.) Profitability | Profit Margin | 2.81% | 3.94% | Notes here: Target has better profitability. The company's revenues in comparison to the net profit and gross proff is way better than that of Target. The company has been able to be more profitable thus more return on assets and return on equity eventually. | ni/s |
| Return on Assets | 6.86% | 7.31% | ni/a | ||
| Return on Equity | 17.54% | 24.99% | ni/e | ||
| 4.) Asset Management | Total asset turnover | 0.0686 | 0.0731 | Notes here: Asset management ratios are used to show the efficiency of the company in making use of its assets. Walmart has better inventory turnover and Accounts receivable turnover. This shows that the company maintains low inventory and sells its inventory faster. It also collects its accounts receivable faster. | s/ta |
| Inventory turnover | 8.3923 | 5.8818 | cogs/inv | ||
| A/Receivable turnover | 83.2687 | 59.4482 | s/ar | ||
| 5.) Market Value | Price/Earnings ratio | 19.22 | 11.94 | Notes here: Walmart has betterprice to earnings while Target has better eaenings per share. | yahoo finance |
| Earnings per Share | 4.16 | 4.95 |
