Question

Does Walmart’s higher stock turn rate necessarily mean that is more profitable than Target? why or...

Does Walmart’s higher stock turn rate necessarily mean that is more profitable than Target? why or why not?

Homework Answers

Answer #1
Walmart's higher stock turn rate does not mean that it is more profitable then target. It depends on various factors such as liquidity ratios as well as ROA and inventory turnover ratios and the leverage ratios implemented for the specific organisation. Highest stock is an indicator of better inventory turnover rate which does not mean that Walmart is more profitable than target in their respective environment.
P.S.- please leave a comment if any explanation is needed.
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