Evaluating the financial health of wal mart

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Evaluating the financial health of wal mart

Wall Street Beer Money Before selecting a stock, there are a number of things that you need to consider in order to ensure that you are buying the stock of a high-quality company whose shares are poised to grow in value over time. Some of these concerns include what the company does, its competitive advantages, valuation, dividend payouts and sustainability, and earnings consistency.

Another important thing that you need to consider is the financial condition of the company in question. You want to know if the company is able to continue paying its bills, and how much debt it carries. WMT in order to get some clues as to how well this company is doing.

I will go through the balance sheet, reviewing the most important items, in order to assess the financial condition of Wal-Mart. Note that this article is not a comprehensive review as to whether Wal-Mart should be bought or sold, but rather, just an important piece of the puzzle when doing the proper due diligence.

This article might be a bit too basic for some and too long-winded for others, but I hope that some of you can derive benefit from it. Background Wal-Mart operates retail stores in various formats under 69 different banners around the world. Their stores sell everything from groceries to health and beauty products to automotive accessories, making them convenient one-stop shops for millions of people.

They pride themselves on offering what they call "everyday low prices. They are Wal-Mart U. This segment includes the operations of stores in all 50 states and Puerto Rico, as well as their U.

The Wal-Mart International segment includes operations in 26 other countries. The company has approximately 2.

Cash and Cash Equivalents The first line in the Assets column of the balance sheet is for the amount of cash and cash equivalents that the company has in its possession. Generally speaking, the more cash the better, as a company with a lot of cash can invest more in acquisitions, repurchase stock, pay down debt, and pay out dividends.

Some people also value stocks according to their cash positions. Some of the larger and more mature companies tend not to carry a lot of cash on their balance sheets, as they might be more inclined to buy back stock with it, or pay out dividends.

Wal-Mart has no plans to repatriate this cash, as it plans to fund its U. When Wal-Mart repurchases shares, those shares are retired and do not show up on the balance sheet as treasury stock.

Net Receivables Receivables constitute money that is owed to a company for products or services that have already been provided.

Of course, the risk with having a lot of receivables is that some of your customers might end up not paying. For fiscal1. Inventory With retail companies like Wal-Mart, I like to keep an eye on inventory levels. I usually like to see inventory levels stable or slightly rising from one year to the next.

At the end of fiscalthis level was at 9. So, I see nothing to worry about here at this time. Current Ratio Another factor that I like to look at is the current ratio. This helps to provide an idea as to whether or not the company can meet its short-term financial obligations in the event of a disruption of its operations.

To calculate this ratio, you need the amount of current assets and the amount of current liabilities. Current assets are the assets of a company that are either cash or assets that can be converted into cash within the fiscal year.

In addition to cash and short-term investments, some of these assets include inventory, accounts receivable, and prepaid expenses. Current liabilities are expenses that the company will have to pay within the fiscal year. These might include short-term debt and long-term debt that is maturing within the year, as well as accounts payable money owed to suppliers and others in the normal course of business.EVALUATING WAL-MART'S FINANCIAL HEALTH 2 Evaluating Wal-Mart's Financial Health Wal-Mart is a big multi-billion dollar company.

There are millions of stores all over the world and they generate billions of dollars in sales, but just because a company is a multi-billion dollar company does not mean their financial health is all that great.

Walmart's Financial Health

So the purpose of this paper is to break down the. EVALUATING FINANCIAL HEALTH. Evaluating Financial Health Brian Moriarity Axia College.

Evaluating Financial Health. Wal-Mart Incorporated operates chain of retail stores in USA as well as outside the USA.

The first Wal-Mart store was opened by Sam Walton in Arkansas in USA in Within a span of five years; he opened more stores and the.

Evaluating the Financial Health of Wal-Mart Stores, Inc Essay Evaluating the Financial Health of Wal-Mart Stores, Inc. Wal-Mart Stores, Inc. is a discount variety business that began small and has grown into a worldwide multibillion dollar industry within the forty eight years of operation.

Evaluating the financial health of wal mart

For Walmart, ROI was fairly stable for the last two fiscal years at percent () and percent () (Walmart Financial Solution Summary This detailed solution provides a financial summary for Walmart's financial ashio-midori.com also defines two financial concepts and explains how they played a major part in the company's financial press.

Both Bachelor's Degree in a related field (e.g., Management, Logistics, Business Administration, Financial Management, Production/Operations Management); and 3 years experience in an operations/distribution/logistics environment, supervising, evaluating, mentoring, and developing employees, managing workload; and participating in the hiring and Work Location: GA.

Responsible Sourcing. These Standards for Suppliers are the foundation of the Responsible Sourcing program operated by Wal-Mart Stores, Inc., including its subsidiaries and affiliates worldwide (“Walmart”). Walmart may add or remove programs from this list from time to time or may pilot the use of new programs while evaluating.

Wal-Mart's 5 Key Financial Ratios (WMT) | Investopedia