Sunday, May 5, 2019
Wal-mart Essay Example | Topics and Well Written Essays - 500 words - 1
Wal-mart - Essay idealThe smart set has a wide customer base with over 200 million customers served on a weekly basis (Walmartstores).In 2010 Wal-Mart Corpoproportionn achieved sales of $405 billion. This sales figure represents an improvement of 1% in comparison with 2009 and 8.34% in comparison with fiscal year 2008. These figures are impressive considering that during this period the world was in the middle of a global recession. Typically the retail business in one of the hardest sectors hit during a recession. Wal-Mart was able to keep growing despite the recession. In 2010 Wal-Mart had a return on return on assets of 8.9%. Wal-Mart obtained a small increase in sales in 2010, but its profitability when up a lot. The net income of the company was $14,335 million. The company achieved an increase in net income in 2010 of 6.97%. The cash reserves of the pot increased from $7,275 million in 2009 to $7907 million in 2010. The total assets of the company went up by 4.45% in 2010.Th e debt to equity ratio of the corporation in 2010 was 1.34. This figure is bit above the normal desirable ratio of 1.0. The industry debt to equity ratio of the retail industry is 0.48 (Dun & Bradstreet). This means that Wal-Marts debt to equity ratio is infra the industry. Due to the fact that the company is such an established business the company has the ability to finance its unconscious process beyond the norm. The ratio means that the company has chosen to more of its operations with debt than with equity. The current ratio which measures the companys ability to pay off its short term debt is 0.87. The 8.9% return of assets metric of Wal-Mart is such(prenominal) cleanse than the industry norm of 3.6%. In 2010 the company had a return on equity of 19.65%. This figure is much better than the industry norm of 4.2%.Wal-Mart Corporation is one of the most successful businesses in America. The common stocks of the tighten are a good
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