ndustry Financial Ratios (2019) Quick ratio 1.0 Current ratio 2.7 Inventory turnover 7.0 Total assets turnover 2.6 Return on assets 9.1% Return on equity 18.2% Debt ratio 50.0% Gross Profit margin 20% Net Profit margin 3.5% P/E ratio 6.0 Required Calculate Walton’s 2019 ratios, interpret and compare them with the industry average data, and comment briefly on Walton’s strengths and weaknesses.
ndustry Financial Ratios (2019) Quick ratio 1.0 Current ratio 2.7 Inventory turnover 7.0 Total assets turnover 2.6 Return on assets 9.1% Return on equity 18.2% Debt ratio 50.0% Gross Profit margin 20% Net Profit margin 3.5% P/E ratio 6.0 Required Calculate Walton’s 2019 ratios, interpret and compare them with the industry average data, and comment briefly on Walton’s strengths and weaknesses.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 14P
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Question
Industry Financial Ratios (2019)
Quick ratio 1.0
Current ratio 2.7
Inventory turnover 7.0
Total assets turnover 2.6
Debt ratio 50.0%
Gross Profit margin 20%
Net Profit margin 3.5%
P/E ratio 6.0
Required
Calculate Walton’s 2019 ratios, interpret and compare them with the industry average
data, and comment briefly on Walton’s strengths and weaknesses.
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