WalmartvsBoeing 2

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Walmart Vs. Boeing

Wal-Mart Incorporated is a company that operates in retail stores and membership clubs, which offers products and services at low prices. The company is divided under three segments Walmart U.S, Walmart International and Sam’s Club (, 2015). While Boeing is one of the World largest aerospace company which manufacture products such as commercial planes and military aircrafts (, 2015). The assignment is to find the most recent Annual Report for both companies, calculate the asset utilization ratios and compare. The asset utilization ratios is defined as “ An analysis tool that defines whether company is wasting
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The receivable turnover is found by dividing the Sales by the Accounts receivable. Walmart is 71.33 times more effective at extending credits and collecting debts, while Boeing is 12.55 times effective at extending credits and collecting them.

4) Day’s sales in receivables = 365 days / Receivables turnover


Receivable turnover
Day 's sales in receivables

Day’s sales in receivable is the average of number of days that a company usually takes before collecting the credit sales. Walmart takes on average 5 days to collect the money, While Boeing takes on average 29 days to collect credits sales. In this case, Boeing takes longer times to collect the money.
5) Total asset turnover = Sales / Total assets
The total asset turnover is the capability to measure the ability of a company to use its assets to efficiently generate sales. The total asset turnover is found by dividing sales by total assets. Walmart total asset turnover is 2.33 times, while Boeing total asset turnover is 0.93 times. Walmart every dollar in assets generated $2.33 in sales and Boeing generates $0.93 in sales.


Total assets
Total asset turnover
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