IntroductionWal-Mart is the world’s largest retailer. They operate in many countries around the world, and have over 2 million employees. The largest market for Wal-Mart is the United States. Wal-Mart is the biggest grocer in the country, one of the biggest online retailers as well. By analyzing the financial statements of Wal-Mart, one can ascertain the company’s financial health as of 2015.
Financial Ratios
Financial statements for publicly traded companies are compiled according to a specific set of rules, and a format that is established both by convention and by the governance of the Securities Exchange Commission. The value of having these rules is that the information contained in the financial statements is reliable, and comparable. Not only can one compare Wal-Mart’s financial performance across different years, but it is also possible to compare Wal-Mart’s performance against other companies in its industry.
One of the means by which financial statements are analyzed is through the use of ratios. The ratios are established by convention – typically the same ratios are used by analysts, because they have clear definitions and established formulas. This means that, for example, a current ratio is always done the same way. Again, this helps analysts to understand companies and compare their numbers across years and industries. The current ratio for Wal-Mart, for example, is calculated the exact same way as the current ratio for Target. This comparability and transparency helps people to assess different investments, for example if you want to invest in the retail sector you can choose between companies more easily by using this form of financial statement analysis.
Wal-Mart Ratio Analysis
The following are Wal-Mart’s financial...
Wal-Mart: Financial Statement Analysis WAL-MART FINANCIAL STATEMENT ANALYSIS Company Description Wal-Mart Stores Inc. (WMT) is a world largest grocery chain and retail stores. The company operates 8000 stores across three business segments which include apparel, groceries, electronics and small appliances. While the company operates globally, half of the company stores are located in the United States. To complete in the international markets, Wal-Mart also operates its business through subsidiaries in Canada, Argentina, China,
Wal-Mart Financial Analysis Wal-Mart Store Inc. is a multinational retailer corporation branded as Wal-Mart in 2008. Founded in 1962, Wal-Mart has now become one of the largest American corporations with chain of retail stores. Wal-Mart sells varieties of consumer goods such as consumer electronics, toys, automobiles, furniture, video games and several other consumers goods. Presently, Wal-Mart enjoys the patronages of 200 million customers per week making the company to record the
Wal-Mart SWOT Internal Analysis & SWOT Currently one of Wal-Mart's biggest assets is it powerful retail brand name. The company has branded itself as the low cost leader in their industry and consumer perceive the brand as offering value for money, convenience and a wide range of products all in one store (Marketing Teacher, N.d.). Wal-Mart has been able to build this brand image over time by focusing on providing consumer the
Indeed, the retailer's current ratio has not exceeded 1.0 in recent times. It is however important to note that given its profitability, it is likely that Wal-Mart converts its inventory into cash at a rate that is much faster than that of its peers in the same industry. For this reason, it is highly unlikely that in the normal course of doing business, the retailer could encounter challenges paying
Wal-Mart Target Wal-Mart and Target are two of the leading retailers in the world. Wal-Mart is one of the world's largest companies and Target is one of its primary competitors. While the both succeed based on similar competencies in logistics and merchandising, there are significant differences between the two that lead to different financial results. Wal-Mart is by far the larger, and this allows it to execute the cost leadership business
79 in 2003 to 7.27% in 2009. In addition, Revenue Per Employee increased from $176,089 in 2003 to $192,618 in 2009. Wal-Mart has defined a series of internal strategies that allow them to capitalize on asset efficiencies and coordinate them to increase profits over the long-term. An example of this type of strategy is the reliance on continual supplier relationship management significantly improving the company's asset turnover from 10.38 in
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