ipl-logo

Walmart Financial Ratio

954 Words4 Pages
bulb-icon

Recommended: Target corporation versus walmart corporation

- Comparison of companies: Ratio analysis help companies to compare their company size, growth, market share and market position with other companies. For example: Walmart compare their market share with other retail store such as target, Sam’s club, Costco.
Limitations of Financial Ratio
Financial ratio analysis is useful tool that lots of investor, analyst and creditors use to analyze company’s financial health, however despite of usefulness financial ratio has some limitations that analyst have to be aware while calculating financial ratio (Jan, 2018). Following are some of the important limitation that is associated with financial ratio (Bragg, 2018).
- Inflation: financial statement is made over period of time. Sometime due to the inflation …show more content…

Walmart is one of the largest growing company with market share 11.4% as compare to target which has only 2.4% market share (Mirzayev, 2015). To analyze Walmart versus Target, investor have to look for the historical performance over period of time. Historical data provide information on how well company is performing. Some financial ratio that investor might use are profitability ratio and debt to equity ratio. Profitability ratio helps investor to analyze how much profit business make after all expenses. Walmart have total assets 203 billion which is about 5 times larger than target which has $41.4 Billion but if we compare these two company together, target has higher profit margin than Walmart (Mirzayev, 2015). Walmart pursue lower – cost strategy, where as target pursue differentiation strategy. The percentage help to indicate how well companies are performing in real world. Liquidity ratio shows that Walmart and target have to pay its debt obligation. In this figure, we can see target of higher current ratio that means target have greater ability to pay its debt as compare to Walmart. As compare to Walmart ratio, Target have better profit margin and better liquidity management. on the other hand, Walmart has 2.41% asset turnover compare to Target which only has 1.72%, so target need to focus more on product efficiency …show more content…

Investor have to look for their competitor performance through yahoo finance or google finance. Yahoo finance is the helpful source that gives all the information about different companies’ performance. To avoid error investor, have to use accurate data, and instead doing manually calculation, investors have to keep record all data safely in excel file. Excel is most reliable tool that lots of financial industries use to calculate their numbers without having any error. Sometimes, market value ratio would be the alternative for ratio analysis because it provides most accurate data and company not only have to rely on historical

Show More
Related

Xacc/280 Week 3 Financial Ratios Paper

422 Words | 2 Pages

The three financial ratios are important tools that judge the leverage, profitability, and liquidity. “Profitability ratios are ratios that measure the rate of return a firm is earning on various measures of investment.” (2018, p. 150) This is important to a business because the whole purpose of a business is to make a profit, profitability shows the business exactly how it is doing and if the business is achieving that goal. “Profitability ratios also have many major ratios one being return-on-equity (ROE), calculated by dividing net income (profit) by owners’ equity, measures the income earned per dollar invested by the stockholders.”

Read More

What Are Target's Fixed Costs?

809 Words | 4 Pages

is a company that’s is economically efficient. They need to meet the demand of their customers at the lowest cost possible. “Economically efficient is the method that produces a given level of output at the lowest cost possible,” (Colander, 2017). Target is definitely working on their technological advances to be able to complete with their competitors as well as be as economically efficient as possible. These advances in technology can also build up revenue both online and in stores which will make Target very efficient.

Read More

Publix Vs Walmart Comparison Essay

586 Words | 3 Pages

Publix and Walmart are two well known retail companies that hold great and horrendous job standards. When you talk about a multi-million-dollar corporation that has almost any and everything that a consumer could ask for in one retail store the first place that comes to mind would natural be Wal-Mart. Wal-Mart strives in customers first policy. Constantly making sure that whatever a customer wants or needs it can be accomplished. Wal-Mart also strives and lives on the motto of “Every day Low Prices.”

Read More

Target Corporation Stock Is Overvalued

303 Words | 2 Pages

However, to compete on price with Walmart and Amazon, Target announced price cuts on thousands of products. The result will undoubtedly be lower margins. Target stock is already suffering there, as operating margins got destroyed in the second quarters, falling to 6.8% from 7.7% on the

Read More

Walmart And Target Swot Analysis Paper

234 Words | 1 Pages

In today’s market, Walmart and Target are two of the top competing companies within the market system. According to Loudenback and Lee (2015) research on Walmart and Target stated, “We just released a list of the 50 most powerful companies in America, and Walmart came out on top as the most powerful company in the nation with Target a close second”. Walmart was founded 60 years after Target was founded. The two companies have found different ways and techniques to stay a top of their competitors. Within my SWOT analysis, I plan on pointing out each company’s strengths, weaknesses, opportunities, and threats.

Read More

Target Corporation Organizational Changes

1175 Words | 5 Pages

Due to new technology and online purchasing, the way in which Target does business has changed dramatically. Consumers have changed their preferences on buying. Sitting on our couch and buying online while we watch our favorite T.V. show, is easier and cheaper than having

Read More

Target's Corporate Fact Sheet

560 Words | 3 Pages

Since the company was founded as a corner store, the company’s business plan has always emphasized on expect more, pay less brand promise that sets it apart from its chief rival, Walmart. Although, Walmart is known for its low prices and offers a large selection to its customers; it’s customer service is often found to be nonexistent. This

Read More

An Inside Look At Target's Procurement Process

1144 Words | 5 Pages

Target is a major retail company that not only supplies consumers with goods, but also some locations offer food and/or beverage services. The first step in operating a company is the procurement process. How the materials for this process are obtained and delivered is a key concept involved in the operations of a company. All of these processes come together to form a supply chain. A successful supply chain operation is vital for any prosperous company.

Read More

Argumentative Essay On Walmart

1125 Words | 5 Pages

Due to the fact that there are more customers, there must be more employees. However, Walmart does not offer their employees a health care policy like other companies do, the workers are usually force to use public assistance in order to take their job. As how it is stated, Walmart does have an awful health care policy. As records shows, since Walmart is so convenient, everyone goes there to buy all the groceries, it made a lot of small businesses to shut down. In the economy, Walmart takes over a large amount of customers who wants to buy products due to their low price.

Read More

What Are The Advantages And Disadvantages Of Target Company

843 Words | 4 Pages

Target Corporation is one of the famous retail stores in the United States which is founded by George Dayton in 1902. Walmart is the main competitor to Target because these companies have similarities such as goods, services, business form, and customers. To compare Target to Walmart is logical because people can determine and analyze advantages and disadvantages in annual financial statement between Target and Walmart. Target and Walmart have different data on investment activities which are important to their companies. Investment activities are, uses necessary resources for operating of their companies which include computers, delivery trucks, furniture, buildings.

Read More

Comparing Walmart And Amazon

1420 Words | 6 Pages

Mid-Term Exam Your Mele P Tuifua American Public University (Charles Town, West Virginia) Abstract This paper analyzes and compares the companies Walmart and Amazon. After explaining a brief overview of each company, we will look at how Walmart stays profitable by having a good relationship with suppliers, and how they keep their competitive position in the global market.

Read More

Ryanair Financial Ratio Analysis

2985 Words | 12 Pages

b) Profitability Profitability ratios are used in an effort to evaluate management’s ability to monitor and control expenses, and to earn a profit on resources committed to the business. These particular ratios assess a company’s strengths and weakness, operating results and growth potential. Moreover, they measure on the efficiency of assets being used to generate net income and sales. The higher the ratio, the more effectively a company is using their assets.

Read More

A Financial Analysis: Starbucks Case

1021 Words | 5 Pages

Additionally, each corporation or business has to meet financial obligations while still being a profitable company. In this research paper, I will outline Starbucks horizontal analysis, ratio analysis and provide feedback for positive and, negative trends. Consequently, the research will also allow me to elaborate on the financial health of the company and be able to determine if an investor should consider the risk.

Read More

Walmart Case Study Amazon's Business Strategy

711 Words | 3 Pages

Investors in Wal-Mart were aware of the obstacles that the giant retailer would face due to the changing consumer preferences and behaviors. However, the financial reports showcased that its online strategy was successful. At the end of the second quarter in 2017, Wal-Mart reported revenue of $123.4 billion, which was an increment of about 2.1% over the previous year quarter. There was also an increase in comparable sales by 1.8% year over year. Wal-Mart has significantly focused on structuring its online sales, while using its already well-established brick and mortar stores and excellent supply chain and logistics to its big advantage.

Read More

Walmart Capacity Planning Analysis

1069 Words | 5 Pages

Capacity planning This is the process of knowing the production capacity an organization needs to meet the changing demands for the products. It helps to determine the quantity of the product needed by a firm to meet the demands of its customers. The capacity planning elements for Walmart are; facility, product and service, and human resource.

Read More

More about Walmart Financial Ratio

Related Topics

Open Document