FINANCIAL ANALYSIS

Financial Analysis: Wal-Mart vs. Target in profitability, liquidity and leverage



Financial Analysis: Wal-Mart vs. Target in profitability, liquidity and leverage

This worksheet divides each of the company's income statements by their revenue, thus creating a common size income statement for both companies.  The revenue thus starts out at 100% for both companies (yellow), and we then subtract the cost of goods sold (COGS) from this to obtain the Gross Margin (orange). The initial view of these figures would suggest that Target is obtaining its goods at a lower cost than Wal-Mart, but we know this cannot be correct. Instead flip this ...