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Published byVirgil Welch Modified over 6 years ago
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SAVE MONEY LIVE BETTER Our future is bright because we’re increasing our investments in associates, stores and e-commerce capabilities to prepare for the way customers will want to shop with us in this new era of retail.
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Saving people money so they can live better
Since the first Walmart store opened in 1962 in Rogers, Arkansas, we've been dedicated to making a difference in the lives of our customers. Our business is the result of Sam Walton's visionary leadership, along with generations of associates focused on helping customers and communities save money and live better. Walmart helps people around the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices.
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Walmart vs target liquidity ratios
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets. In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. The higher the quick ratio, the better the company's liquidity position.
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Walmart VS TARGET LIQUIDITY RATIOS
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. The formula is total current assets divided by total current liabilities. The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets. The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
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Walmart performance ratios
Days Inventory indicates the number of days of goods in sales that a company has in the inventory. An increase of Days Inventory may indicate the company's sales slowed. Accounts receivable turnover is the number of times per year that a business collects its average accounts receivable. The ratio is intended to evaluate the ability of a company to efficiently issue credit to its customers and collect funds from them in a timely manner.
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Walmart financial graphs
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WALMART vs TARGET INVENTORY tURNOVER
Inventory Turnover measures how fast the company turns over its inventory within a year.
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Walmart workforce Based on survey results from more than 2 million associates worldwide, approximately 4 of 5 are proud to work for Walmart.
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conclusion Looking at all these financial ratios we can see that not every year it is a good financial year for Walmart compared to other great companies like Target and likewise. On top of that, Wal-Mart released a statement that the company is OK with raising the minimum wage in the U.S. A higher minimum wage presents an interesting dilemma for Wal-Mart. On one hand, a large percentage of its customers are low-income consumers, meaning that they'll potentially spend more there once they're making more. But on the other hand, Wal-Mart pays a large percentage of its employees minimum wage, which means that an increase in the minimum wage will boost the company's expenses. So, should you invest in Walmart? A lot of stock analysts recommend to wait and see. They want to see Walmart delivering a dividend yield of at least of 3%. Sales fluctuate year by year, but it does not mean that Wal-Mart is loosing revenue over this situation. Walmart number of days’ sales in inventory for example, show us clearly how sales decreased in 2014 but in 2013 sales were high. However, Wal-Mart have to innovate the merchandise they offer because some people rather to pay a little bit more and acquire something more trendy and better quality. This lack of innovation can be highly negative for Wal-Mart sales. On the other hand the liquidity ratios shows how Walmart meets its short term payments obligations every year, meaning that they have been able to pay their vendors and workforce. Overall, Walmart continues to be the giant on sales. However, when you’re a giant, growing isn’t easy.
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