Calculate the given ratios for the company

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Reference no: EM131200767

Walmart

Write the given assignment in 500-800 words with attached Excel spreadsheet showing:

Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2014 and 2015:

•Liquidity Ratios
•Current ratio [current assets / current liabilities]
•Quick ratio [(current assets - inventory) / current liabilities]
•Asset Turnover Ratios
•Collection period [accounts receivable / average daily sales]
•Inventory turnover [cost of goods sold / ending inventory]
•Fixed asset turnover [sales / net fixed assets]
•Financial Leverage Ratios
•Debt-to-asset ratio [total liabilities / total assets]
•Debt-to-equity ratio [total liabilities / total stockholders' equity]
•Times-interest-earned (TIE) ratio [EBIT / interest]
•Profitability Ratios
•Net profit margin [net income / sales]
•Return on assets (ROA) [net income / total assets]
•Return on equity (ROE) [net income / total stockholders' equity]
•Market-Based Ratios
•Price-to-earnings (P/E) ratio [stock price / earnings per share]
•Price-to-book (P/B) ratio [market value of common stock / total stockholders' equity]

Interpret the ratios that you have calculated. If a ratio increased from 2014 to 2015, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.

If a ratio decreased from 2014 to 2015, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.

If a ratio was unchanged from 2014 to 2015, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.

Reference no: EM131200767

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