Outstanding Walmart Ratio Analysis
This ratio is calculated by dividing the net sales by the gross profit times 100 to get the percentage needed for the analysisGross Profit Margin Ratio 100 x net sales gross profit 2015.
Walmart ratio analysis. Balance sheet and profit and loss account of the company are used which is purely an secondary data given in appendixes to make such analysis. Walmarts current ratio ended in 2017 at86. 88 in 2009 level.
For this analysis to be conducted data is needed. Also quick ratio and cash ratio improved from 2009 to 2010 see exhibit 12-1. Nevertheless it can be a negative sign for the company to have a current ratio less than 2.
If we look at the total debt ratio of the retail industry it is at 71 while Walmarts is only at 68. Write a 500 to 750 word summary of your analysis. 9 in 2007 to 0.
However in the next three years Walmart would increase the current ratio in 2021 to97. Walmart Incs POP ratio increased from 2019 to 2020 and from 2020 to 2021. Sales are also more stable than earnings and never negative.
Walmart Incs current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. Long-term solvency refers to the companys ability to meet long term financial commitments. A liquidity ratio calculated as cash plus short-term marketable investments plus receivables divided by current liabilities.
Comparing Wal-Marts turnover ratio with the industry norm Wal-Mart surpasses the industries turnover ratio see Table 5. As compared to Wal-mart Target Corp is maintaining a good position in liquidity. Walmart Incs quick ratio improved from 2019 to 2020 and from 2020 to 2021.