Wal-Mart Evaluation Report

Wal-Mart Evaluation Report Axia College of University of Phoenix Analyzing Wal-Marts annual report provides a positive first moment on Wal-Marts financial health. Given the specific balances and its comparison to new(prenominal) companies in the same industry, Wal-Mart is leading and more than likely go away continue its dominance. Though Wal-Mart did not lead in completely numbers, its leadership and strong presence of the market cements the ongoing achievement of the company. The review of the current ratio, quick ratio, stock certificate turnover ratio, debt ratio, give notice profit margin ratio, ROI, ROE, and P/E ratio every(prenominal) indicate an upbeat future for the company. The current ratio, which is defined as current assets divided by current liabilities, is a circular of how much liabilities a company has compared to its assets. Wal-Mart in the form of 2007 had a current ratio of .90, and as of January 2008 it had a current ratio of .81. The quick ratio, which is defined as current assets minus inventory divided by current liabilities, is a measure of a companys ability pay short 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 unruffledity.

Wal-Mart is not as liquid as its competitors such as Costco or Family Dollar Stores, Inc. The agent why Wal-Mart is not too liquid is because they are heavily investing their profits for expansion and growth. Management claims in their financial report that holding their liquid reserves in different currencies has helped Wal-Mart hedge against inflationary pressures of the United States dollar. The next ratio to disembodied spirit at is the inventory ratio which is defined as the salute of sales divided by average inventory. In the year of 2007, Wal-Marts inventory ratio was 7.68, and as of January 2008 it was 7.96. Because Wal-Mart has a manage of sales, it does not have too much of a business with holding too much inventory. The competitors of... If you want to get a full essay, order it on our website: Ordercustompaper.com

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