Walmart

For the fourth year in a row, Wal-Mart is number peerless on Fortune magazines annual listing. Holding the occur spot on the Fortune 500 is a indication that many companies strive to obtain. However, does size equal financial yield and stability? This paper will research Wal-Marts financial place through analyzing its many different financial ratios. Methodology For the persona of this research, all ratios, and pertaining data was retrieved from Mergent Online. The industry used for comparison was obtained by the North American Industry Classification System (NAICS), which replaced the U.S. measurement Industrial Classification (SIC). (http://www.census.gov/epcd/www/naics.html) This peer group report by NAICS via Mergent includes 25 companies (including Wal-Mart and its subsidiary Costco); other companies on the list are BJs Wholesale Club Inc., Hills Stores Co., and Tar wash up Corp. This group does non include all retailer in the world nor in the U.S. However, it shall serve as a proportional segment of the full industry, which will operate as an unbiased point of fictitious character to be considered the industry average. Profitability Wal-Mart continues to grow in virtually every category. In 2000, Wal-Mart recorded $156.2 one thousand thousand in net gross sales; this number has steadily increased each year to the $256.

3 cardinal reported in the 2004 annual report. Over $100 billion increase in net sales in unaccompanied 5 years. However, an increase in net sales means absolutely nothing if it does not manifest into a get for the company. In Figure 1, you can see Wal-Marts derive molding ratio trend for the past 5 years. Figure 1 As seen in Figure 1, Wal-Marts profit has stayed around 3.25 over the period. In laypersons terms, this means the net income is approximately 3.25 times more than the net sales. This level is exceptional when compared to the industry average. Over the period, Wal-Marts profit margin has been three times that of the industry. Important in... If you want to get a full essay, order it on our website: Orderessay

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