Interpreting Financial Results Paper
Autor: phillyj23 • March 17, 2016 • Research Paper • 3,971 Words (16 Pages) • 784 Views
Interpreting Financial Results Paper
FIN 571
November 16, 2015
John Kushner
Interpreting Financial Results Paper
Business’s financial ratios can have a vital role with companies well-doing on the financial source. Financial ratios present progression and deleterious of a business. This paper will try to calculate the financial ratios for Walmart’s financial statements, and interpret the results versus Target’s financial statements.
The liquidity ratios display the company's abilities to pay the short-term obligations over short-term assets. According to the chapter, the commitments should be paid without risk the company (Parrino, Kidwell, & & Bates, 2012). Walmart has a higher liquidity ratio versus Target.
Liquidity Ratios
Walmart Ratios
Current Ratio = Current Assets
Current Liabilities
2015 2014 2013
203.71B = 1.73 % 204.75B = 1.68 % 203.11B = 1.68 %
117.77B 121.92B 120.85B
Quick Ratio= Current Assets-Inventory
Current Liabilities
2015 2014 2013
203.71B-45.14B = 1.35% 204.75B-44.86B = 1.31% 203.11B-43.8B = 1.32%
117.77B 121.92B 120.85B
Target
Current Ratio= Current Assets
Current Liabilities
2015 2014 2013
14.09B= 1.94% 44.55B = 1.57% 48.16B = 1.52%
27.41B 28.32B 31.61B
Quick Ratio= Current Assets-Inventory
...