Final answer:
The student's calculations show that Walmart's working capital, current ratio, and quick ratio indicate potential liquidity issues, and a high debt to equity ratio suggests financial risk. However, the assessment of Walmart's financial condition requires additional context and comparison with industry standards.
Step-by-step explanation:
The student has calculated various financial ratios for Walmart which are vital indicators of the company's financial health. The working capital is negative at -15.98B, indicating that current liabilities exceed current assets, which could suggest potential liquidity problems in the short term. The current ratio of 0.79 and the quick ratio of 0.22 both point to a similar concern, as they are below 1, suggesting that the company may not be able to fulfill its short-term obligations without raising additional funds or converting non-current assets into cash. A debt to equity ratio of 207% is quite high, showing that Walmart has more than twice as much debt as equity, which could indicate a higher financial risk if the company faces interest rate increases or declining profits.
However, without context, it is difficult to say definitively if Walmart is in bad financial shape. It is necessary to compare these ratios to industry averages, historical performance, and other qualitative factors before making an assessment. Walmart's size and market power may allow it to operate comfortably with a higher debt load and leaner liquidity than smaller, less established firms.