Financial ratios are the principal tool of financial analysis. Ratios standardize the financial information of firms...

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Finance

Financial ratios are the principal tool of financial analysis.Ratios standardize the financial information of firms socomparisons can be made between firms of varying sizes. Choose twofirms in the same sector; locate their current financialinformation both in terms of current financial statements and stockmarket prices. How liquid are the firms? Are the firm's managersgenerating adequate operating profits on the company's assets? Howare the firms financing their assets? Are the firm's managersproviding a good return on the capital provided by theshareholders? Are the firms’ managers creating shareholdervalue?

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Answer I am choosing two companies of Retail sector in the USA These are Walmart and Target We can see the major ratios of companies with the help of following table This data has been taken as on January 31 See Answer

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