Question

look at the income statement, the balance sheet, the shareholder's equity and the statement of cash...

look at the income statement, the balance sheet, the shareholder's equity and the statement of cash flows for the company of Walmart and the company of Amazon. figure out and compute these things for the year of 2017:

profit margin
asset turnover
return on assets
return on common stockholder's equity.
How would you evaluate each company's profitability

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Answer #1
Year 2017 (amount in millions)
Company Formula Walmart Walmart Amazon Amazon
Profit Margin NP/T.Turnover 14293/485873 0.029 3033/177866 0.017
Assets Turnover T.Turnover/T.Assets 485873/198825 2.44 177866/131310 1.35
Return on assets NP/T.Assets 14293/198825 0.07 3033/131310 0.02
Return on Common shareholders Equity NP/Shareholder's Equity 14293/80822 0.18 3033/27709 0.11
Profitability evaluation:
Year 2016
Profit Margin NP/T.Turnover 15080/482130 0.031 2371/135987 0.017
Profitibility from 2016 to 2017 DECREASED STAGNENT
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