Unsurprisingly, Wal-Mart’s low quick ratio is also a result of supplier leverage. Specifically, at the end of the fiscal third quarter the company had $49.6 billion in inventory booked on its.
The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations. It is calculated as a company’s Total Current Assets divides by its Total Current Liabilities. Walmart’s current ratio for the quarter that ended in Oct. 2021 was 0.95. Walmart has a current ratio of 0.95.
How did Wal-Mart manage to keep prices so low?
In order for Wal-Mart to be able to provide low prices for its customers, it had to be very conscious about keeping costs low and charging slim margins at the same. The premise of this business model is through keeping both costs and prices low, the business will capture value through much higher sales volume and profits, as a result.
Thus, Wal-Mart’s every day low prices business model and establishing itself as cost leader in the retail industry have been a strong source of growth for the company in the past. In order for Wal-Mart to be able to provide low prices for its customers, it had to be very conscious about keeping costs low and charging slim margins at the same.
Another frequent inquiry is “What is Walmart known for?”.
Copy Link Walmart is known for its low prices. Walmart is the world’s largest retailer, operating stores in all 50 states, Puerto Rico, and in 27 countries, serving up to 100 million customers weekly. Walmart is known for its low prices, which it has codified in its Every Day Low Price guarantee.
Nearly every third person in the United States visits a Walmart store every week, and the reason people flock so regularly to this store is because of its low prices strategy. Ever wondered how Walmart manages to maintain low prices, almost driving away other retail chain stores from the area?
How does Walmart’s D/E ratio compare to its competitors?
Compared with its key competitor, Walmart has a lower D/E ratio, where Target’s ratio was 2.8 for its fiscal quarter ending Oct. 31, 2020. 1 2 The interest coverage ratio measures how many times a company can pay the interest on its outstanding debt with its current earnings.
How does Walmart’s financial performance compare to competitors?
Typically considered a blue-chip stock, Walmart Inc. (WMT)’s financial performance is worth comparing to competitors such as Costco and Target. Compared to the aforementioned competitors, Walmart has a stronger P/E ratio and P/B ratio. However, when looking at return on equity, debt/equity ratio, and its current ratio, Walmart falters.