Walmart Performance
Wallie's ratios
Discuss Wal-Mart's performance over the three-year period.
Wal-Mart's sales growth slumped from 7.3% 2009-2008 to 1% from 2010 over 2009, but has increased again to 3.4% year-end 2011 over 2010 (Wal-Mart, 2012a, n.p.). This is a deep discount from years prior to the 2008 recession, when sales growth was 8.4% and 11.6% year over year in 2008 and 2007, respectably, but considering global macroeconomic conditions since that time, the increase from 2011 over 2010 suggests consumers are spending again. At the same time, operating income has continued to increase year over year, with per-share revenue growth and an increase in dividends, all while the firm has taken on more long-term debt and expanded fixed assets mostly it seems through opening new international units. This increase in long-term debt has driven a fall in owner equity with the result being a picture of a competitive multinational increasing its global presence which should increase earnings per share if increasing sales cover debt service given continued spending growth. Increasingly positive operating income even in the face of expanding debt supports the likelihood debt service will not overwhelm earnings per share, alongside 2011 operating expense falling back to 2009 levels after an increase in 2010, all while sales in U.S. retail stores have actually fallen, but were carried by increased sales at Sam's Club stores in that segment.
Discuss the major differences in financial performance over the three-year period.
The major difference as mentioned above is a significant increase in capital assets and debt as Wal-Mart expands the number of international retail stores. Inventories have increased after a fall in 2010, which probably reflects the addition of some 450 retail...
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