Wal-Mart Evaluation Report

1877 Words8 Pages
Wal-Mart Evaluation Report

Axia College of University of Phoenix

Analyzing Wal-Mart's annual report provides a positive outlook on Wal-Mart's financial health. Given the specific ratios and its comparison to other companies in the same industry, Wal-Mart is leading and more than likely will continue its dominance. Though Wal-Mart did not lead in all numbers, its leadership and strong presence of the market cements the ongoing success of the company. The review of the current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and P/E ratio all indicate an upbeat future for the company. The current ratio, which is defined as current assets divided by current liabilities, is a measure of
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Wal-Mart's stellar performance has created optimism for those invested in Wal-Mart whether it be a shareholder, bondholder, employee, management, and as a consumer. Wal-Mart is a great buy; however, one should wait for the stock to dip a little lower. The current economic conditions in America especially, Wal-Mart might suffer because consumers in America will be less inclined to spend as much money. Though they are still going to grow because Wal-Mart has expanded its operations in emerging markets such as Asia, it will be able to bounce back. Its long term growth and outlook is still positive however stock prices will probably take a dip in the near future as America's economy begins to decline and contract. Wal-Mart still, however, gathers hundreds of millions of customers and continues in its growth. Their mission of providing low prices will help attract customers who want the most out of their money. Many analysts agree that Wal-Mart will perform well into the future and when looking at Wal-Mart's revenue and market cap compared to its competitors, Wal-Mart surpasses and moves ahead. With the right system and leadership in place, Wal-Mart may even monopolize their market as a retailer. It sells a diversified range of products such as foods,

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