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 ...

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