Question

1.How is Walmart doing in relation to its industry peers? How are its ratios in relation to it industry peers? Where do you see them going in the future based on past selected performance (i.e. previous years’ ratios)?

2.Walmart Bonds. Does the firm issue bonds? If so, what are the characteristics of these bonds and do you feel that they borrow too much, too little or just about right? Why?

3. Walmart Stock. What are the details of stock offerings has the company had? What has been the performance of the stock in the past 10 years? What is the dividend and dividend percentage? Calculate the value of the common stock of the firm.

Through their 10 k filling.

Answer 1

1.Walmart is doing phenomenally well and it is retaining the top position as the consumer retailer company in United States and it could be reflected throughout the shares are hitting 52 week high among the fear of coronavirus pandemic, where the entire global economy has taken the serious heat and is in the bear market.

If we consider the previous year ratios it has outperformed its peers by huge margin. It has a debt ratio of .64 is in line with the industry but it is producing exceptional growth and return on capital so that it is easily able to beat its cost of debt through its exceptional liquidity ratio.it has a better current ratio then its peers and quick ratios are also exceptional which shows that the company's inventory turnover days are very low.

profit margin have been significantly lower but the return on equity and return on asset has been phenomenally exceptional and have beaten the competitors by huge margin.

I am looking at Walmart continuing its exceptional performance and it can be reflected that since it is a mature company it is going to acquire other companies which are in growth stage, like in India, it has acquired Flipkart. Flipkart is the leader of online retail business in India and it will help Walmart to gain in the supply chain management as well.

So Walmart is a better growth trajectory and it is expected to grow steadily in coming years.