Financial Ratios Project Case Study Example | Topics and Well Written Essays - 1000 words

Financial Ratios Project - Case Study ExampleThe figure in Wal-Mart is lesser than one though higher(prenominal) than that in scar (Marketwatch.com).The receivables turn everywhere symmetry measures a companies effectiveness in collecting debt. Targets ratio increases by a bigger bank than that of Wal-Mart over the three years. However, the receivables turnover ratio of Wal-Mart is still higher than that of Target. The inventory turnover ratio measures the effectiveness of a company in converting its inventory to sales. The ratio in Target decreases slightly over the three-year period while that in Wal-Mart increases.The asset turnover measures the managements effectiveness in utilizing the company assets to get sales. This ratio increases by a bigger in margin over the three years in Target than in Wal-Mart though Wal-Mart still has a higher a ratio. The profit margin indicates how much profit is generated from a companys sales. This ratio fluctuates in Target over the three ye ars while it remains constant with slight changes in Wal-Mart.Return on assets ratio measures a companys effectiveness in utilizing assets to generate profits. Targets return on assets ratio fluctuates over the three years. Wal-Marts ratio is higher than that of Target despite it decreasing slightly. The return on integrity measures a companys effectiveness in utilizing shareholder equity to generate profit. This ratio fluctuates in Target as it decreases slightly in Wal-Mart. patronage this, Wal-Mart ratio is still higher than that of Target (Marketwatch.com).The debt to assets ratio measures the leverage level of the company in relation to its assets. Targets debt to assets ratio is higher than that of Wal-Mart over the three years. Free cash flows ratio shows the amount of cash flow, which is attributable to the equity holders and debt holders of a company. The ratio fluctuates in both the companies though the one in Wal-Mart is higher. Times interest, earned ratio shows the abi lity of