Wal-Mart Stores Inc. Essay

866 WordsNov 23, 20094 Pages
Wal-Mart Stores, Inc. The Sam’s Club segment consist of warehouse clubs in the United Sates and the segment’s online retail operations, which is samsclub.com. This company’s focus for this segment is to provide outstanding value on brand name products at their member’sonly prices for both small business and personal use. Each membership warehouse consists of approximately 133,000 square feet in size. The Sam’s Club division was responsible for 11.7% of the total fiscal 2009 net sales (Annual Report 22). This segment reported a 5.6% growth in net sales to $46.9 billion for the fiscal 2009 year (Annual Report 22). This increase was a result from store sales increases, along with the continued expansion program of the Sam’s Club segment. The expansion program consists of the opening of new units, relocations, and the expansions of existing clubs. The operating income of the Sam’s Club segment for this fiscal year was $1.6 billion (Annual Report). The next step in observing the performance of Wal-Mart Stores, Inc. is to examine the corporation as a whole. Analyzing the Wal-Mart Stores, Inc.’s financial report provides a strong positive outlook on the company’s financial wellbeing. This corporation’s dominance can be seen by examining given ratios. The review of the current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI and ROA ratiosall indicate a good future for Wal-Mart. The current ratio is defined as current assets divided by current liabilities. It is a measure of how much liabilities a company has compared to its assets. In the fiscal 2009 year, Wal-Mart had a current ratio of .90%. The quick ratio is the measure of a company’s ability to pay short term investments. This ratio is defined as current assets minus inventory divided by current liabilities.

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