In: Finance
Write an analysis on Walmart of the ratio results that you found. In your analysis you should answer the following questions: How liquid is the company? How well is profit being generated from company assets? What can management do to improve financial performance?
Current ratio | Walmart Inc.’s current ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Quick ratio | Walmart Inc.’s quick ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Cash ratio | Walmart Inc.’s cash ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Gross profit margin | Walmart Inc.’s gross profit margin deteriorated from 2017 to 2018 and from 2018 to 2019. |
Operating profit margin | Walmart Inc.’s operating profit margin deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Net profit margin |
Walmart Inc.’s net profit margin deteriorated from 2017 to 2018 and from 2018 to 2019. |
A company can attain financial success on multiple possible dimensions—profitability and growth, for example. How should priorities be set, and how can we avoid focusing on the wrong areas? The natural conclusion might be that there’s no room left to improve, and if performance priorities are anchored on those absolute figures, attention and resources are likely to shift elsewhere. But when we augment our performance picture with relative standings, it becomes clear greater heights are possible.