Walmart

Analyzing Wal-Marts annual report provides a positive outlook on Wal-Marts monetary health. Given the specific balances and its comparison to former(a) companies in the same industry, Wal-Mart is leading and more than likely continue its dominance. though Wal-Mart did not lead in all numbers, its leadership and unattackable presence of the market cements the ongoing success. The review of the veritable balance, spry ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and P/E ratio all indicate an upbeat upcoming for the club. The flow rate ratio, which is defined as current assets divided by current liabilities, is a measure of how a good read liabilities a company has compared to its assets. Wal-Mart in the year of 2007 had a current ratio of .90, and as of January 2008 it had a current ratio of .81. The spry ratio, which is defined as current assets minus inventory divided by current liabilities, is a measure of a companys tycoon pay c urt term obligations. Wal-Mart in the year of 2007 had a quick ratio of .25, and as of January 2008 it had a ratio of .21. both the current ratio and quick ratio are a measure of liquidity. Wal-Mart is not as liquid as its competitors much(prenominal) as Costco or Family Dollar Stores Inc.

I believe the agreement why Wal-Mart is not too liquid is because they are hard investing their simoleons for expansion and growth. Management claims in their financial report that prop their liquid reserves in other currencies have helped Wal-Mart misrepresent against inflationary pressures of the US dollar. The next ratio to look at is the inventory ratio which is defined as the cost of gross reve nue divided by amount inventory. In the yea! r of 2007, Wal-Marts inventory ratio was 7.68, and as of January 2008 it was 7.96. Wal-Mart has a lot of gross sales therefore it doesnt have too much a problem of keeping too much inventory. Its competitors have corresponding ratios though they usurpt have as much sales as Wal-Mart. Wal-Marts ability to sell at lower prices for same...If you need to get a full essay, cabaret it on our website: OrderEssay.net

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