Financial Analysis: Wal-Mart in This Research Paper

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Indeed, the retailer's current ratio has not exceeded 1.0 in recent times. It is however important to note that given its profitability, it is likely that Wal-Mart converts its inventory into cash at a rate that is much faster than that of its peers in the same industry. For this reason, it is highly unlikely that in the normal course of doing business, the retailer could encounter challenges paying back vendors in the near future.

Stock Price Analysis

In my opinion, Wal-Mart's stock is likely to continue performing relatively well into the future. This is particularly the case given that the company's ROE (in relation to that of its peers) has largely been impressive in the past. Active investors are likely to be drawn to this stock given its impressive performance. To further improve the performance of the stock, the management should embrace an extensive growth and expansion strategy that seeks to capture emerging markets including but not limited to China, India, Brazil, and parts of Africa.

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In addition to ensuring that the retailer does not rely on only a few markets, such a move would have the effect of increasing the company's bottom-line

Conclusion

Based on the analysis I have conducted above, I am of the opinion that Wal-Mart would be a good company to invest in. In addition to having a stable gross profit margin, the company has also managed to maintain a relatively high and stable return on equity. It is also important to note that Wal-Mart continues to utilize a winning competitive strategy to remain relevant and profitable in a relatively competitive industry. For this reason, Wal-Mart has a unique chance to further consolidate its market share as it seeks to exploit emerging markets......

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"Financial Analysis Wal-Mart In This", 14 March 2013, Accessed.29 April. 2024,
https://www.aceyourpaper.com/essays/financial-analysis-wal-mart-86705