Essays /

Wal Mart Financial Health Evaluation Essay

Essay preview

Wal-Mart Financial Health Evaluation
David Carlson
ACC 230
February 27, 2011
Anne Klemme

Wal-Mart Financial Health Evaluation
When analyzing the annual financial reports for Wal-Mart it is easy to see a positive outlook in Wal-Mart's future of financial health. Looking at and comparing the ratios with other companies in the same industry, Wal-Mart seems to be the easy frontrunner. A review of the current, debt/equity, inventory turnover, net profit margin, Return on Total Assets (ROA), Return on Equity (ROE), and quick ratios all indicate that the trend of leading the retail industry will 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 industry had a 1.1. The quick ratio (which is current assets minus inventory divided by current liabilities) is a measure of a company's ability meet short-term obligations. In 2010 Wal-Mart ...

Read more


/investor/invsub/results/statemnt.aspx?symbol=wmt /q?s=wmt /sites/annualreport/2010/financials.aspx 0.3 0.4 0.67 0.73 0.9 1.1 2007 2009 2010 2011 21 22 230 27 3.4 4.51 8.4 8.5 8th 9.1 9.2 abil abl acc accord account also analysi analyz ann annual asset averag bad better blemish bottom busi capit carlson caus central chang compani compar competitor conclus consist continu cost current custom cycl david debt debt/equity decreas defin differ difficult divid draw earn easi econom economi ed effici end equiti evalu even expand expans februari financ financi fix focus fraser front frontrunn futur gain good hall happi health help high import improv inc increas indic industri intern inventori invest investor keep klemm know l last lead let liabil like line littl live long look lot lower m make manag margin market mart measur meet minus money msn much need net new next nj number oblig open oper opinion order ormiston outlook path pearson/prentice peopl per philosophi pictur plan posit price profit quick ratio reason refer reinvest remain report retail retriev return review right river roa roe runner saddl sale save say see seem seen sell shape share sharehold shop short short-term show similar sold someth spend stand statement stay steadi still stock store technolog tell term though time top total trend tri true turnov understand upper use volum wal wal-mart well wmt yahoo year