Question

Working on the key finances for Walmart for a project for my bachelors. What are Walmart's financial statements for the last 5 years? What are their following ratios: working capital, quick, operating margin, EBITDA? Are there any other important ratios to focus on?

Answer 1

Walmart financial statements for last 5 years has been on an increasing Trend and the company has been reportedly making higher profits and increasing the market so the financial statement is also reflecting the lot of acquisitions which has been done by the Walmart in form of Flipkart which has been acquired by Walmart in India and other companies in other countries as well.

When we will be looking at the financial ratios of the Walmart, Working capital ratio is more than 1 and it is reflected that the company is highly generating cash profits and it is having enough money in order to deal with the short term debt repayment obligation and it is having a high amount of current assets to deal with the payments of current liabilities and it is able to maintain a high amount of working capital ratio in order to have a higher liquidity.

Operating profit margin of Walmart is 25% and it is reflecting that the company is able to generate healthy profit on the operational friend front meeting up with non operating expenses so the company has been consistently generating operating profits during previous years in order to have a better operational performance

Quick ratio of Walmart is very lower and it is in the range of .20,and it can be said that the company is not having enough of current asset to deal with the current liabilities when we are taking out the inventory is and other current assets which are not a part of the quick asset so it is not helping the company had it is having a large storage of inventory.

EBITDA margin for Walmart in around 7% and it is a healthy margin in retail industry who is catering to wholesale consumer services because these larger players are making higher profits and even a smaller Margin will be leading to a larger profit base so it will be leading to a high degree of profits for the company and it is likely to sustain in the coming years and it is also having a competitive edge against other players.