Thursday, September 19, 2019
Wal-MArt :: essays research papers
Background Information Ø     Wal-Mart Inc. Corporate Headquarters  ·Ã‚     702 Southwest 8th street Bentonville, Ar 72716-8001 Top Executives      ·Ã‚     President and CEO: H. Lee Scott  ·Ã‚     Chairman of the Board: S. Robson Walton  ·Ã‚     Chairman, Executive Committee of the Board: David D. Glass  ·Ã‚     Chief Financial officer & Executive Vice President: Thomas M. Schoewe Industry  ·Ã‚     General Merchandise, SIC code: 5399 Divisions  ·Ã‚     Wal-mart stores  ·Ã‚     Sam’s Club  ·Ã‚     International Major Products  ·Ã‚     Hardware  ·Ã‚     House-wares  ·Ã‚     Auto Supplies  ·Ã‚     Small Appliances  ·Ã‚     Domestics  ·Ã‚     Grocery  ·Ã‚     Candy  ·Ã‚     Tobacco  ·Ã‚     Pharmaceuticals  ·Ã‚     Electronics  ·Ã‚     Health & Beauty Aids  ·Ã‚     Sporting Goods  ·Ã‚     Toys  ·Ã‚     Stationary  ·Ã‚     Jewelry  ·Ã‚     Shoes  ·Ã‚     1-hour Photo Major Competitors  ·Ã‚     Target  ·Ã‚     Sears Roebuck & Co.  ·Ã‚     Kmart  ·Ã‚     Costco Wholesale Most Successful Wal-mart Brands  ·Ã‚     Ol’ Roy  ·Ã‚     Great ValueÃ’  ·Ã‚     EquateÃ’ Financial Analysis Ø     Profitability Wal-mart experienced sales growth of 20% in the fiscal year of 2000. This impressive increase is a direct result of the companies expansion program. Wal-mart has also acquired a few international stores, which are doing very 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) each year for 11 consecutive years. Year          Net 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 Ø     Analysis Ø     Liquidity Wal-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 lot of wal-marts’ money is being pumped into the super centers and also financing the over seas expansion.      Year          Current Assets     Short-term Debt     Liquidity 2000          $24,356           $25,803           0.9439 1999          $21,132           $16,762           1.2607 1998          $19,352           $14,460           1.3383 1997          $17,331           $11,454           1.5131 1996          $15,338           $9,973           1.5380 Ø     Analysis Ø     Capital Management 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 between 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 happy shareholders for years to come. Year          Total Assets     Overall Debt     Leverage 2000          $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 Ø     Analysis Ø     Asset Management Once again wal-mart demonstrates why it is looked at as the 5th most admired company in the United States. Wal-marts’ inventory ratio 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 today that actually learns from and builds on its mistakes.
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