The formula and ratio value

    1) What is the formula and ratio value? Where did you get the values used to calculate the ratio (which financial statement)? Current Ratio = Current assets/Current liabilities. (Consolidated Balance Sheets) Quick Ratio = (Current assets-Inventory)/Current liabilities (Consolidated Balance Sheets) 2) Where is the purpose of this ratio? What information does it provide about the financial/operational performance of the company? Using the current ratio, a company determines whether it can meet current liabilities (debts and payables) with current assets (cash, inventories, and receivables). A company with a current ratio of less than 1.00 often lacks the resources to meet its short-term obligations if the entire amount was due at the same time, while a ratio greater than 1.00 indicates that the company will remain solvent in the short term. 3) Explain the results of the ratio calculation. Is your company strong in this area? Is the company liquid, profitable, efficient, or well-leveraged, and/or favorable? Please provide a comparison of a competitor, prior years, or the industry in your analysis. Current Ratio Walmart (amounts in millions)Target (amounts in millions)YearAssetsLiabilitiesRatioAssetsLiabilitiesRatioBetter liquidity2021252,49692,6452.7351,24816,6833.07Target2020236,49577,7903.0442,77916,4592.60Walmart QuickRaio Walmart (amounts in millions)Target (amounts in millions)YearAssets-InventoryLiabilitiesRatioAssets-InventoryLiabilitiesRatioBetter liquidity2021252,496-44,94992,6452.2451,248-10,65316,6832.43Target2020236,495-44,43577,7902.4742,779-8,99216,4592.05Walmart Comparing Wal-Mart's rival Target and Liquidity, Wal-Mart had good liquidity in 2020 and Target in 2021. However, both companies can be evaluated as companies with good liquidity. References Walmart Inc. Form 10-K. (2021, March 19). UNITED STATES SECURITIES AND EXCHANGE COMMISSION. Retrieved January 16, 2022, from https://www.sec.gov/ix?doc=/Archives/edgar/data/104169/000010416921000033/wmt-20210131.htm#iaaf0cabf1f7048c9b7e317b3e9c1cfc5_115 Target Corporation Form 10-K. (2021, March 10). UNITED STATES SECURITIES AND EXCHANGE COMMISSION. Retrieved January 16, 2022, from https://www.sec.gov/ix?doc=/Archives/edgar/data/27419/000002741921000010/tgt-20210130.htm#i5d6e11e9e8174675a063efd3d071738e_82