Required: Compute the DuPont ratios (profit margin, asset turnover, and financial leverage ratios) for Walmart and Target given these numbers for 2012-2020. Check your numbers to make sure that Profit margin × Asset turnover × Financial leverage = Return on equity. To access the data file, click on DuPont Analysis Walmart Target Data. (Note the data is in $ millions.) Note: Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places. Walmart (WMT) Year Sales Revenue Net Income Assets Stockholders' Equity 2020 $ 559,151 $ 13,510 $ 252,496 $ 87,531 2019 $ 523,964 $ 14,881 $ 236,495 $ 81,552 2018 $ 514,343 $ 6,670 $ 219,295 $ 79,634 2017 $ 500,343 $ 10,523 $ 204,522 $ 80,822 2016 $ 485,873 $ 14,293 $ 198,825 $ 80,535 2015 $ 482,130 $ 15,080 $ 199,581 $ 83,611 2014 $ 485,651 $ 17,099 $ 203,490 $ 85,937 2013 $ 476,294 $ 16,695 $ 204,541 $ 81,339 2012 $ 468,651 $ 17,756 $ 203,105 $ 81,738 Target (TGT) Year Sales Revenue Net Income Assets Stockholders' Equity 2020 $ 93,561 $ 4,368 $ 54,248 $ 14,440 2019 $ 78,112 $ 3,281 $ 42,779 $ 11,833 2018 $ 75,356 $ 2,937 $ 41,290 $ 11,297 2017 $ 71,879 $ 2,914 $ 40,303 $ 11,651 2016 $ 69,495 $ 2,737 $ 37,431 $ 10,915 2015 $ 73,785 $ 3,363 $ 40,262 $ 12,957 2014 $ 72,618 ($1,636) $ 41,172 $ 13,997 2013 $ 71,279 $ 1,971 $ 44,553 $ 16,231 2012 $ 73,301 $ 2,999 $ 48,163 $ 16,558 Answer is complete but not entirely correct. Walmart (WMT) Profit Year Margin Asset Turnover Financial Return on Leverage Equity 2020 0.0241 2.2161 2.8846 0.1543 2019 0.0284 2.2184 2.8999 0.1825 2018 0.0130 2.3454 2.7538 0.0838 2017 0.0286 2.4464 2.5305 0.1768 2016 0.0309 2.4345 2.4837 0.1867 2015 0.0319 × 2.4163 2.3864 X 0.1837 2014 0.0369 2.3866 2.3679 0.2084 2013 0.0351 2.3286 2.5147 0.2053 2012 0.0379 2.3074 2.4848 0.2172 Answer is complete but not entirely correct. Kroger (KR) Profit Asset Financial Return on Year Margin Turnover Leverage Equity 2020 0.0193 2.7457 5.0393 0.2669 2019 0.0134 2.7021 5.2611 0.1907 2018 0.0254 3.1786 4.8336 ག 2017 0.0254 3.2976 5.3870 0.3901 0.2736 2016 0.0170 3.1595 5.4404 0.2917 2015 0.0187 3.2401 4.9863 0.3014 2014 0.0161 3.5566 5.6040 0.3210 2013 0.0156 3.3597 5.4274 0.2838 2012 0.0157 3.9039 5.8458 0.3579

Required: Compute the DuPont ratios (profit margin, asset turnover, and financial leverage ratios) for Walmart and Target given these numbers for 2012-2020. Check your numbers to make sure that Profit margin × Asset turnover × Financial leverage = Return on equity. To access the data file, click on DuPont Analysis Walmart Target Data. (Note the data is in $ millions.) Note: Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places. Walmart (WMT) Year Sales Revenue Net Income Assets Stockholders' Equity 2020 $ 559,151 $ 13,510 $ 252,496 $ 87,531 2019 $ 523,964 $ 14,881 $ 236,495 $ 81,552 2018 $ 514,343 $ 6,670 $ 219,295 $ 79,634 2017 $ 500,343 $ 10,523 $ 204,522 $ 80,822 2016 $ 485,873 $ 14,293 $ 198,825 $ 80,535 2015 $ 482,130 $ 15,080 $ 199,581 $ 83,611 2014 $ 485,651 $ 17,099 $ 203,490 $ 85,937 2013 $ 476,294 $ 16,695 $ 204,541 $ 81,339 2012 $ 468,651 $ 17,756 $ 203,105 $ 81,738 Target (TGT) Year Sales Revenue Net Income Assets Stockholders' Equity 2020 $ 93,561 $ 4,368 $ 54,248 $ 14,440 2019 $ 78,112 $ 3,281 $ 42,779 $ 11,833 2018 $ 75,356 $ 2,937 $ 41,290 $ 11,297 2017 $ 71,879 $ 2,914 $ 40,303 $ 11,651 2016 $ 69,495 $ 2,737 $ 37,431 $ 10,915 2015 $ 73,785 $ 3,363 $ 40,262 $ 12,957 2014 $ 72,618 ($1,636) $ 41,172 $ 13,997 2013 $ 71,279 $ 1,971 $ 44,553 $ 16,231 2012 $ 73,301 $ 2,999 $ 48,163 $ 16,558 Answer is complete but not entirely correct. Walmart (WMT) Profit Year Margin Asset Turnover Financial Return on Leverage Equity 2020 0.0241 2.2161 2.8846 0.1543 2019 0.0284 2.2184 2.8999 0.1825 2018 0.0130 2.3454 2.7538 0.0838 2017 0.0286 2.4464 2.5305 0.1768 2016 0.0309 2.4345 2.4837 0.1867 2015 0.0319 × 2.4163 2.3864 X 0.1837 2014 0.0369 2.3866 2.3679 0.2084 2013 0.0351 2.3286 2.5147 0.2053 2012 0.0379 2.3074 2.4848 0.2172 Answer is complete but not entirely correct. Kroger (KR) Profit Asset Financial Return on Year Margin Turnover Leverage Equity 2020 0.0193 2.7457 5.0393 0.2669 2019 0.0134 2.7021 5.2611 0.1907 2018 0.0254 3.1786 4.8336 ག 2017 0.0254 3.2976 5.3870 0.3901 0.2736 2016 0.0170 3.1595 5.4404 0.2917 2015 0.0187 3.2401 4.9863 0.3014 2014 0.0161 3.5566 5.6040 0.3210 2013 0.0156 3.3597 5.4274 0.2838 2012 0.0157 3.9039 5.8458 0.3579

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 9DQ

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