Walmart strategic audit
Megan Campbell
BSAD 690
Walmart Strategic Audit
Abstract
Walmart is in an industry that is continuously growing and expanding. They are the industry leader; however, they still face many issues. By offering a wide variety of products at very low prices they are able to sustain a competitive advantage. The firm faces pressure from customers and the government for ethical concerns and issues with the law. Walmart should continue to expand in the global market while strictly enforcing ethical issues. They must also take into account the changing customer preferences, such as individuals eating more organic foods.
I. Current Situation
A. Current Performance
According to Walmart’s financial statements, the company had an increase in income of approximately $1,399,000. They had reported revenue of $466,114,000, which is an increase of $2,260,000 since 2012. Walmart reported earnings per share of $5.04, which increased from $4.54 last year. Earnings from continuing operations have also increased from $24,398,000 to $25,737,000. Walmart’s fourth quarter was the most profitable for them as holiday sales boosted. International sales also increased overall from 2012. Walmart’s CEO stated, “We continue to monitor economic conditions that can impact our sales, such as rising fuel prices, changes in inflation and the payroll tax increase." The company has showed strong profitability for 2013 as well. Return on sales Gross profit margin: 24.38% Net profit margin: 5.96% Return on investment Return on equity: 26.23% Return on assets: 9.0%
Gross profit margin assess a firm 's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. This is the percentage of revenues available to cover operations and other costs. Net profit margin is how much after tax profit Walmart makes for every $1 it generates in sales. The return on equity of Walmart is the amount of net
BSAD 690
Walmart Strategic Audit
Abstract
Walmart is in an industry that is continuously growing and expanding. They are the industry leader; however, they still face many issues. By offering a wide variety of products at very low prices they are able to sustain a competitive advantage. The firm faces pressure from customers and the government for ethical concerns and issues with the law. Walmart should continue to expand in the global market while strictly enforcing ethical issues. They must also take into account the changing customer preferences, such as individuals eating more organic foods.
I. Current Situation
A. Current Performance
According to Walmart’s financial statements, the company had an increase in income of approximately $1,399,000. They had reported revenue of $466,114,000, which is an increase of $2,260,000 since 2012. Walmart reported earnings per share of $5.04, which increased from $4.54 last year. Earnings from continuing operations have also increased from $24,398,000 to $25,737,000. Walmart’s fourth quarter was the most profitable for them as holiday sales boosted. International sales also increased overall from 2012. Walmart’s CEO stated, “We continue to monitor economic conditions that can impact our sales, such as rising fuel prices, changes in inflation and the payroll tax increase." The company has showed strong profitability for 2013 as well. Return on sales Gross profit margin: 24.38% Net profit margin: 5.96% Return on investment Return on equity: 26.23% Return on assets: 9.0%
Gross profit margin assess a firm 's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. This is the percentage of revenues available to cover operations and other costs. Net profit margin is how much after tax profit Walmart makes for every $1 it generates in sales. The return on equity of Walmart is the amount of net
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