| Question 1 Using the most recent three years of available data, compute Wal-Mart’s and Target’s degree of operating leverage. You will have to use the formula, percentage change in pretax income divided by percentage change in revenues. Show your work. |
| Question 2 Using the last three years of available data, compute Wal-Mart’s and Target’s degree of financial leverage. You will have to use the formula, percentage change in net income divided by percentage change in pretax income (EBIT). Show your work. |
You can find a condensed version of Wal-Mart’s and Target’s financial statements under the financial section of Yahoo Finance.
http://finance.yahoo.com/q?uhb=uh3_finance_vert_gs_ctrl2&fr=&type=2button&s=WMT%2C
http://finance.yahoo.com/q;_ylt=AtTy8Ukysw9H8Jo4SGMOn0knv7gF?uhb=uhb2&fr=uh3_finance_vert_gs_ctrl2_e&type=2button&s=TGT%2C
Also, you may find that reviewing the key statistics section of these sites to be helpful.
Please use this to aid you in your interpretation of the ratios. http://www3.nd.edu/~mgrecon/simulations/micromaticweb/financialratios.html.
No comments:
Post a Comment