These two charts all are the important ratios come from war-Mart.

Walmart Financial Ratio

Liquidity Ratios
2011
2010

Working Capital
-6,591
-7,511

Current Ration
88.73%
86.48%

Receivable Turnover
88.2
88.2

Avg. days
$5.22
$4.39

sales uncollected

Inventory Turnover
8.8
8.6

Avg. days
45
42

inventory on hand

All liquidity ratios have increased slightly from year to year, except we

see a decrease in working capital, and a constant receivable turnover.

With the inventory driver, Wal-Mart maintains an efficient supply chain by

keeping low levels of inventory

Wal-Mart is a leader in its use of the information driver to improve

responsiveness and decrease inventory investment.

Build nearby new stores increasing efficiency of its transportation assets.

Profitability Ratios
2011
2010

Profit Margin
3.90%
3.50%

Asset Turnover
2.3
2.4

Return of Assets
10.20%
8.90%

Return on Equity
23%
19.80%

Walmart has increased their return on assets and equity since the last

fiscal year. The profit margin increases by a mere .4, but the asset

turnover decreased by .1. The company has increased their profits

according to this information. This refer low price strategy as cost driver

Wal-Mart practices "everyday low pricing"for its products.

This ensures that customer demand stays steady and does not fluctuate

with price variations.

Wal-Mart feeds them large orders, allowing them to be efficient by exploiting

economies of scale.

Solvency Ratio
2011
2010

Debt to Equity Ratio
65.80%
52.50%

By dividing the company’s total debt by the amount of shareholders

equity the math shows that since 2010 there is a larger percentage of the

company indebted.

Market Strength Ratios
2011
2010

Price per share
$4.07
$1.23

Dividend yield
2.76%
2.35%

Walmart increased its profits from 2010 to 2010 and therefore their prices

per share had an increase. The company is also paying out more

dividends in relation to their share prices.

Current ratio

2010:
Wal-Mart - $51,893,000 / $58,484,000 = .89
Target - $17,213,000 / $10,070,000 = 1.71

Quick ratio

2010:
Wal-Mart – ($51,893,000 - $36,318,000) / $58,484,000 = .27
Target – ($17,213,000 - $7,596,000) / $10,070,000 = .96

Activity ratios

2010:
Wal-Mart - $421,849,000 / $34,739,000 = 12.14
Target - $68,466,000 / $7,596,000 = 9.01

Receivables turnover
2010:
Wal-Mart - $421,849,000 / $5,089,000 = 82.89
Target - $68,466,000 / $6,153,000 = 11.13
Wal-Mart has a much better turnover rate on its accounts receivables than Target does.

Fixed asset turnover
2010:
Wal-Mart = $421,849,000 /