Project

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MBA5009_W2_Hatfield_S.xlsx

Instructions

Wal-Mart is one of the most dynamic companies in our economy.
However, the company is being challenged in the market by new competitors. For the Wal-Mart Corporation, go online and find the annual report for the most recent year available.

Calculations

Ratio Formula Results Status Evaluation
Operating Profit Margin After Taxes = net income/netsales 0.0290115351 Walmart has lower operating profit margin after taxes
Gross Profit Margin = (Revenue-COGS)/Revenue 24.7% Gross profit margin indicates a high revenue exceeds COGS
Average Collection Period = 365*(Avg Accounts Receivable/Sales) 4.3775144857 Payment collection is first according to Walmart's collection period
Total Asset Turnover = totalsales/Avg assets 2.2991465368 Revenue generated from Assets is efficient
Fixed asset Turnover = totalsales/Avg fixed assets 3.1555827238 Revenue generated from Fixed Assets is efficient
Inventory Turnover = cogs/avg inventory 489.8882681564 Walmart sales and replace the stock at high rate
Debt to Assets = total liabilities/total assets 65.5% Walmart assets are financed mostly by debts
Times Interest Earned = EBITDA/Interest Expense 12.8064123377 Walmart is in a good condition to continue servicing debts
Reference
Macrotrends. (2020). Walmart Income Statements 2005-2020. Retrieved December Recommendation
12, 2020 from https://www.macrotrends.net/stocks/charts/WMT/walmart/income-statement Walrmart should strategies on increasing net income to ensure that
they are able to cover their interest charges
Overally, Walmart is much growing and able to meet profits which
enables them put startegies that ensure they remain competitive.