Interpreting Financial Results Paper

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

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