FINANCIAL ASPECTS OF WAL-MART

Financial aspects of Wal-Mart

Financial aspects of Wal-Mart

Financial Leadership Profile

The leadership profile of the company is based on following:

Robson Walton is Wal-Mart's Chairman of the Board of Directors.

Michael T. Duke is the CEO and President of the company.

Rollin L. Ford is the CIO and EVP of the company.

Charles M. Holley is the CFO and EVP of the company.

Current Company Performance

The current performance of Wal-Mart is based on recognizing at the international level which is a vital aspect in the success of the company. Moreover, the company is a leader in low cost which helps the company in attracting the customers with low price. In addition to this, Wal-Mart is also a leader in the market with extensive product line, which serves as a basis of competitive advantage for the company.

Key Financials (See Appendix - I)

In addition to this, in context of current financial performance of Wal-Mart, it can be said that the most of the assets of company are comprised of the liabilities that company carry; thus, it is not positive sign for Wal-Mart as the liabilities are high for the company, as compared to equity of company. Furthermore, the equity composition is also not adequate because it is well below as compared to the company's liabilities. Besides it, it is found that the current net assets per share and also the total assets per share presents that the assets structure of Wal-Mart is in good shape, which presents that if financial loss take place then the company can pay off its debts.

Business Risk

The business risks which are related with company include the risk of legal actions that can be taken by the labor. Furthermore, another risk of Wal-Mart is the big box retailing format which lead to restriction only to the developed areas. In addition, distorting difference between the Wal-Mart and its rivals; and increased competition of extension from organizations and local authorities. Besides it, probable risk that can be associated with the Wal-Mart include that more than 2 million of employees increase exposure to high healthcare costs and rising wages, and also the unpredictability in the prices of the commodity and inflation might put pressure margins.

Financial Performance

Profitability Ratios (See Appendix - II)

The profitability of Wal-Mart is not adequate, the reason such statement is that past performance of the company from 1st quarter to 4th quarter of 2011 shows that the company has been facing loss. ...