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  • aaq2 replied to the topic Discussion Topic: Exercise your research skills in the forum Business 101 7 years, 5 months ago

    Walmart
    Return on Equity:
    Return on equity expresses net income as a percentage of shareholders equity. ROE values about 9-10% are considered strong and ROE above 25% is considered excellent. Walmart has an ROE of 17.5
    Debt to equity ratio: Total debt/total equity. If the value is high then it means the company is growing by borrowing money. For Walmart, this ratio is .6141. This means the company is growing possibly because of profits and is considered low risk

    Inventory turnover ratio: cost of goods sold/average inventory. This measures how long inventory stays on the shelves before being sold. For Walmart the ratio is 8.05 days.

    Asset turnover ratio: sales/assets. This is a financial measure of how a company uses its assets in generating sales revenue or income. Higher ratio means there is more efficient asset management. The ratio for Walmart is 2.39 so that’s good