Walmart

When analyzing the annual financial reports for Wal-mart it is wanton to see a positively charged outlook in Wal-marts future of financial health. expression at and comparing the proportions with other companies in the equivalent industriousness, Wal-mart seems to be the easy frontrunner. A review of the received, debt/equity, stock-taking swage, net profit margin, tax return on Total Assets(ROA), Return on Equity(ROE), and quick dimensions swash ensemble indicate that the trend of leading the retail perseverance leave alone continue. The current ratio(which is the current assets divided by current liabilities) is a measure of how much in liabilities a company has compared to its assets. Wal-mart in 2010 had a current ratio of 0.9 and the diligence had 1.1. The quick ratio(which is the current assets minus inventory divided by current liabilities) is a measure of a companys ability coming upon of short-term obligations. In 2010 Wal-mart had a quick ratio of 0.3 compa red to the perseverance of 0.4. The next ratio is the inventory turnover ratio which harmonize to Fraser,L.M. & Ormiston (2007) is defined as the cost of goods sold divided by the remaining inventory at the end of the accounting cycle. In 2010, Wal-marts inventory turnover ratio was 9.1 quantify compared to a 9.2 times in 2009. until now though this inventory turnover ratio is a brusque lower than 2009 it is still about the same as industry average which is 8.5. This indicates that Wal-mart is trending about the same as similar companies. direct looking at the debt/equity ratio for 2010 was 0.73 compared to industry of 0.67. This indicated that Wal-mart is trending in debt ratio also with their competitors. This means Wal-mart is qualification more currency on their investments than their competitors.If you want to get a full essay, pasture it on our website: OrderCustomPaper.com

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