Financial statement analysis

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Reference no: EM13150245 , Length: 272 words

"Financial Statement Analysis" Please respond to the following:

From the first e-Activity, compute the percentage difference between the two companies with respect to operating, investing, and financing activities, and interpret the results. Discuss how this analysis has affected your investment decision made in Week 6. 

Walmart and Target received my attention as I shop frequently there. It was found by oneself that:

Walmart Target
Current Ratio=Current Assets/Current Liabilities 

0.88
0.91
Asset Turnover= Revenue/(Initial Asset+Final Assets/2) 2.29 1.63
Rate of Return on Common Stock Equity= Net Income-Preferred Dividend/Average common stockholders equityx100 21.77 

12.09
Book Value per share=total common stockholders equity/number of common shares 23.59 25.64

Based on this information, investing in Walmart seems to be a more reasonable choice as Walmart has a better asset turnover when it comes to its revenue and assets. As well as a good rate of return on common stock equity. Walmart raises its dividend virtually every year, and it has more than doubled its dividend. It is to my understanding that Walmart operates domestically as well as internationally.  

Reference no: EM13150245

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