Walmart Financial Analysis
Walmart Stores, Inc. (NYSE: WMT) branded as Walmart since 2008 and Walmart before then, is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores. It is the biggest private employer in the world with over 2 million employees, and is the largest retailer in the world. Walmart operates retail stores in various formats around the world and is committed to saving people money so they can live better and more comfortable. Walmart earns the trust of their customers every day by providing a broad assortment of quality merchandise and services at everyday low prices, while fostering a culture that rewards and embraces mutual respect, integrity, and diversity. The company is controlled by the Walton family, which owns 48% stake in Walmart. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. In May 1971, Walmart stock experienced its first 100 percent split, at a market price of $47. At that time, the company operated in five states: Arkansas, Kansas, Louisiana, Missouri, and Oklahoma. In 1972, after being approved and listed on the New York Stock Exchange, Walmart stock split 100 percent for a second time, with a market price of $47.50.
Liquidity
In 2011, Walmart's current ratio is .89, and the industry average for the year is 1.19 (Stock-analysis) When comparing Walmart's current ratio to the range of comparability it is substantially different in a negative way. The quick ratio for Walmart's is .21 and the industry average is .45(stock-analysis). The quick ratio also falls on the positive side of the range of comparability that is shown in appendix B. While viewing the historical values for both the current ratio and the quick ratio it became apparent that Walmart has shown weaknesses in its liquidity for some time now. All of the values calculated were pretty much