Wal-MArt :: essays research papers

Background InformationWal-Mart Inc.Corporate Headquarters702 southwestward 8th street Bentonville, Ar 72716-8001Top ExecutivesPresident and CEO H. lee ScottChairman of the Board S. Robson WaltonChairman, Executive Committee of the Board David D. Glass foreman Financial officer & Executive Vice President Thomas M. SchoeweindustriousnessGeneral Merchandise, SIC code 5399DivisionsWal-mart storesSams Club world-wideMajor ProductsHardwareHouse-waresAuto SuppliesSmall AppliancesDomesticsGroceryCandytobaccoPharmaceuticalsElectronicsHealth & Beauty AidsSporting GoodsToysStationary Jewelry garment1-hour PhotoMajor CompetitorsTargetSears Roebuck & Co.KmartCostco Wholesale Most Successful Wal-mart BrandsOl Roy not bad(p) ValueEquateFinancial abridgmentProfitabilityWal-mart be intimated gross revenue growth of 20% in the fiscal year of 2000. This impressive addition is a direct result of the companies involution program. Wal-mart has also acquired a some international stores, which are doing actually well and adding to the companies profit. As the table shows wal-mart is no stranger to climbing profits, in fact wal-mart has managed to increase sales by no less than 12% (typically more(prenominal)) each year for 11 in series(p) years.YearNet Earnings Net Sales Profitability 2000$5,377 $165,013 0.0326 1999$4,430 $137,634 0.0322 1998$3,526 $117,958 0.0299 1997$3,056 $104,859 0.0291 1996$2,740 $93,627 0.0293 AnalysisLiquidityWal-marts liquidity has been decreasing since 1996, which is a good sign from a growing company.In 2000 wal-marts liquidity dropped off drastically, this is on account of their expansion projects. They are willing to take some short-term risks, because they are very confident it will pay off down the road. A view of wal-marts money is being pumped into the super centers and also financing the over seas expansion. YearCurrent summationsShort-term DebtLiquidity2000$24,356 $25,803 0.9439 1999$21,132 $16,762 1.2607 1998$19,352 $14,460 1.3383 19 97$17,331 $11,454 1.5131 1996$15,338 $9,973 1.5380 AnalysisCapital trouble To say wal-mart is healthy is an under statement, thriving is a bit more fitting. The company has plenty of assets to cover their overall debt. Wal-mart continues to widen the gap mingled with total assets and overall debt, the companies leverage has been increasing for 5 years running. By keeping their assets high and debt low wal-mart is assuring increased profits and well-chosen shareholders for years to come. YearTotal AssetsOverall DebtLeverage2000$70,349 $25,803 2.7264 1999$49,996 $16,762 2.9827 1998$45,384 $14,460 3.1386 1997$37,541 $11,454 3.2775 1996$32,819 $9,973 3.2908 AnalysisAsset Management Once again wal-mart demonstrates why it is looked at as the fifth most admired company in the United States. Wal-marts inventory proportionality has been on the rise for at least five years. As wal-mart grows and gains experience it creates a very strong base for it self. It is one of the few companies n ow that actually learns from and builds on its mistakes.