Essay on Wal-Mart Financial Health 2012
The following business analysis considers the financial health, technological advantages, the effects of globalization, and a benchmarking analysis of Wal-mart in comparison with comparable organizations in their industry segments using United States companies. Competitors in the supercenter market are Target and Meijer, whereas Costco is a key competitor in the member warehouse-style market. Only Costco (Costco Annual Report, 2011) is currently competing in the international marketplace.
Wal-Mart Stores Incorporated (WMT), Target Corporation (TGT), and Costco Wholesale Corporation (COST) are public held companies with stock traded on the New York Stock Exchange (NYSE) and required to …show more content…
Wal-Mart $ 74.05 $ 1.59 $ 0.021
Costco $ 95.70 $ 1.10 $ 0.011
Target $ 61.97 $ 1.44 $ 0.023 Source: NYSE stock quote August 3, 2012
Balance Sheet A firm’s balance sheet reports their financial condition on a specific date in terms of assets and liabilities or what it owns and what it owes (Nickels, 2010). Wal-Mart’s current asset’s value is $193,406 million and total liabilities are $62,300 million (Walmart Annual Report, 2012). Costco’s assets and liabilities are $26,761 million and $14,188 million, respectively (Costco Annual Report, 2011). Target reported $46,630 million in assets and $16,522 in liabilities (Target Annual Report, 2011). An analysis of asset to liability ratio indicates Wal-Mart is in a financially healthier position with a debt ratio of 3.11; meaning for every one dollar in debt Wal-Mart has $3.11 in assets as shown in figure two. Following Wal-Mart is Target with a 2.82 debt