Sears V. Walmart

3367 Words Apr 9th, 2012 14 Pages
Sears Vs. Walmart
Financial Performance Comparison
Profit Margin
Profit Margin, Sears Co. |
| 1997 | | 1996 | | 1995 |
Net income | 1,188 | -6.53% | 1,271 | -29.43% | 1,801 |
Total revenues | 36,371 | 7.76% | 33,751 | 8.41% | 31,133 |
Profit Margin | 3.27% | | 3.77% | | 5.78% |

This Profit Margin ratio is acceptable, though not high. The result means that for each dollar of sales at Sears Co., the company earns only 3.27 cents in 1997, compared to 3.77 cents and 5.78 cents in 1996 and 1995 respectively. This slim and downward trend profit margin obviously won't make its investor happy.
Profit Margin, Wal-Mart Inc. (Fiscal years ended Jan 31) |
| 1998 | | 1997 | | 1996 |
Net income | 3,526 | 15.38% | 3,056 | 11.53% | 2,740 |
Total revenues
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The answer will be 1 .34 . this is a good sign that the company will be able to pay its obligations when they fall due . Based on both current ratios above , Sears company has a better current ratio at 1 .94 when compared with the current ratio of Walmart of only 1 .34 .B Sears Acid Test ratio Quick Assets 20201 1 .279354 Current Liabilities 15790 The quick assets are arrived at by adding the cash , cash equivalents ,receivables and marketable securities . The quick ratio is arrived at dividing the quick assets for the year 2007 of 20 ,201 . The quick ratio is 1 .28 times .Walmart Acid Test ratio Quick Assets 2423 0 .167566 Current Liabilities 14460 The quick ratio here is arrived at by dividing the quick assets of 2 ,423 for the year 2007 by the current liabilities amounting to 14 ,460 for the same year . The acid test ratio or quick ratio is .17 Based on the above data , Sears has a better quick ratio with its higher rate of 1 .28 as compared to the quick ratio or acid test ratio of Walmart at only .17 .C SOLVENCY LEVERAGE RATIOS Ability to pay long term obligations Sears 38700 The ratio of .85 . This shows that the company will be able to pay its obligations when the time of payment arrives .Walmart 45384 The Walmart will be able to pay its obligations when they

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