Answer Happy

Required
Compute the values of each of the ratios in Exhibit
5.26 for Walmart for
2020. Walmart had 2,821 million common
shares outstanding at the end of fiscal 2020, and the market price
per share was $140.49. For 2019, the comparable shares and price
per share were 2,832 million and $114.49, and for 2018, they were
2,878 million and $95.83, respectively. Notes: For days accounts
receivable outstanding, use total revenues in
your calculations. For computations with interest expense, exclude
interest income but include imputed interest expense on average
operating lease liabilities (current and
long-term); Walmart discloses an
implicit interest rate of 6.1% on operating leases. For the
interest coverage ratio (cash flow basis), ignore imputed interest
for operating leases (as done in the text). For earnings before
interest and taxes in the Altman’s Z calculation, include interest
income in earnings before interest and taxes.
Exhibit 5.26 Walmart Risk Ratios (Integrative Case 5.1) 2020 Current ratio Quick ratio Operating cash flow to current liabilities ratio Accounts receivable turnover Days accounts receivable outstanding Inventory turnover Days inventory held Accounts payable turnover Days accounts payable outstanding Net days of working capital financing needed Liabilities to total assets ratio Liabilities to shareholders' equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Interest coverage ratio (net income basis) Interest coverage ratio (cash flow basis) Altman's Z-score Probability of bankruptcy Altman's Z components: Net working capital/TA Retained earnings/TA EBIT/TA MVE/BV Liabilities Sales/TA 2019 0.79 0.20 0.33 83.39 4.38 8.90 41.02 8.90 41.01 86.41 0.66 1.90 0.44 0.79 7.39 12.72 4.20 0.0796 2018 0.80 0.18 0.36 86.48 4.22 8.75 41.71 8.76 41.65 87.58 0.64 1.75 0.39 0.63 5.88 14.52 4.17 0.0896 -0.07 0.35 0.10 2.09 2.22 4.20 -0.07 0.37 0.06 1.97 2.35 4.17 Shares end of year (millions) Price per share end of year MV 2,821 $ 140.49 $396,322 2,832 $ 11449 $324,236 2,878 $ 95.83 $275,799