American Corporation Analysis

1425 Words Mar 26th, 2014 6 Pages
American Corporation Analysis
September 19, 2013
Mr. Ponteja
American Corporation Analysis
Wal-Mart is one of the biggest retailers not only in the United States, but also internationally. The corporation was founded in Arkansas by Sam Walton in 1962 and has grown to produce revenue of over $460 billion while employing 2.2 million employees (Seeking Alpha, 2013). Wal-Mart is known for the low cost structure and has succeeded in the retail market. Although the corporation has been successful, there are many competitors in the retail industry that could be considered a threat for Wal-Mart. To help Wal-Mart maintain its sustainability, a corporation analysis can be performed to measure profitability and liquidity
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As a result, from 2012 to 2013 the company inflated by 5.0% in profit.
Wal-Mart Inc, most concern with it is the measure profitability. The most important tools of financial analysis are ratio and the profitability which is base to determine the organization return to its investors. Measure profitability measures the important to company management and owners investments. Wal-Mart Inc has investors who have invested into the company future grow and potential to global expansion. Wal-Mart measure profitability ratios show the efficiency and performance. The profitability ratios can be dividing in returns and margins. Ratios represent the margins of the organization and the ability to translate profits, sales or assets into stages of measurement. Wal-Mart rations efficiency can generate returns for its shareholders. The measure profitability is calculate base from the financial data obtained from annual reports from Wal-Mart .The ratio analysis perform four major areas of liquidity, asset management, debt management and profitability. The measure profitability analysis consists of the current ratio. All these ratios indicate higher levels of liquidity for Wal-Mart ability to meet short term obligations. The elements of the measure profitability are to understand the company profitability and ability to earn return sales, total assets. Three profitability measures are the profit margin sales, return on assets, and, the return on shareholders’
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