evaluation of the company performance based on :
walmart Macy
Return on equity =net income/ shareholders equity =17756 / 76343=23.26% =1198 / 6051= 19.8 %
Return on asset=net income/ average total assets =17756 / 203105= 8.74 % =1198 / 20991= 5.71%
Profit margin=net income/ net sales =17756 / 469162 = 3.78% = 1198 / 27686 = 4.32%
Asset turnover ratio=net sales/ average total assets =469162/203105= 2.309 =27686 / 20991= 1.32
average receivables turnover:credit sales/average debtors = 469162/6768= 69.32 =27686/ 371= 74.62
inventory turnover:: cost of good sold/ average inventory = 352488 / 43803= 8.047 =16538/5308 = 3.115
property plant equipment turnover:revenue/ ppe = 469162/116681=4.02 = 27686/8196 = 3.37
creditor turnover ratio= cost of goods sold/avg creditors = 352488/59099= 5.96 = 16538/ 4951 = 3.34
Cash to cash cycle :no of days of sales outstanding = 365/69.32 +365/8.047 = 365/74.62 + 365/3.115
+ inventory days (-) Days payable to customer (-) 365/5.96 (-)365/3.34
=(10.63) days negative cycle = (12.78) days negative
cash cycle
if cash cycle is negative it means the company doesnt pay for inventory or materials until after you’ve sold the final product associated with them.working capital is used as efficiently as possible and have available cash for other things.
Note : 1) If the full forms given for the ratio are not what it is , kindly comment
2) balance part of the question has not been answered due to non availablity of table 3.1 as mentioned in question for amazon and nordstorm.
