Question

In: Accounting

Chevron Corp Eaton Corp Kroger Wal-Mart Current Ratio 1.03:1 1.65:1 0.85:1 0.81:1 Total Asset Turnover 0.42...

Chevron Corp

Eaton Corp

Kroger

Wal-Mart

Current Ratio

1.03:1

1.65:1

0.85:1

0.81:1

Total Asset Turnover

0.42

3.07

3.16

2.44

Times Interests Earned

-0.50%

-10.17

6.58

9.66

Total Debt/Equity %

25.96

44.83

239.04

63.72

Return of Sale %

-451.80%

10%

0.90%

2.70%

Return of Assets %

0.85%

4.97%

5.28%

6.70%

Return on Equity %

6.26%

18.53%

23.95%

15.24%

P/E or P/E Ratio (x)

17.84

14.6

12.93

17.63

How would you rank the four firms in terms of financial performance?

Why might their financial performances differ?

What economic or market factors might account for big differences in P/E ratios?

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