In this project, you will complete financial statement analysis of two companies, Walmart (ticker: WMT) and Target (Ticket: TGT). As you learned to access company data from www.sec.gov, you will obtain the 10-Ks for both companies for latest year, the year ended January 2020 (The latest 10-K will be dated some time in Fenruary or March 2020). Then you will calculate all ratios that are discussed in Ch 13 for two years for each company. Based on calculation of ratios (2 years x two companies) you will answer the following questions:
C. Provide all ratios for the two companies, for both years, in a table (2 x 2 = four columns of ratios. the first two columns should be for Walmart (year 2, year 1) and the next two columns should be for Target (year 2, year 1).
B. Comparing each company’s performance this year (year 2) relative to the previous year (year 1), answer the following questions. Support your conclusions with mention of appropriate ratios.
i. Has the company’s liquidity improved or deteriorated?
ii. Is the company collecting cash from its credit customers at a faster pace or slower pace?
iii Is the company selling its inventory at a faster pace or slower pace?
iv. Is the profitability of the company better or worse this year?
C. Comparing the two companies with each other for the latest year only
i. Which company collects faster from its credit customers.
ii Which company is selling its inventory at a faster pace?
iii. Which company has better return on assets?
iv. Which company provides better investment returns for its owners?