Case Analysise

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Individual Case Analysis 1
Exercise 4a, Step 1:
1. Current Ratio: $3,517,600/$2,537,900= 139%, 1.39
2. Quick Ratio: $3,406,100/$2,537,900= 134%, 1.34
3. Debt-to-Total-Assets Ratio: $10,217,800/ $28,461,500=35.9%, .359 4. Debt-to-Equity Ratio: $10,217,800/$13,382,600= 76%, .764 5. Long-Term Debt-to-Equity Ratio: $10,186,000/$13,382,600=76%, .761 6. Times-Interest-Earned Ratio: $6,442.90/$445= 1447%, 14.48 7. Inventory Turnover : $23,552.40/$.11

8. Fixed Assets: $23,522.40/$4.71
9. Total Assets Turnover: $23,522.40/$28.46
10. Accounts Receivable Turnover: $0/$931,200
11. Average Collection Period: N/A
12. Gross Profit Margin: $23,522.40/$5,586.10=421%
13. Operating Profit Margin: $6,442.90/$23,522.40=27%
14. Net Profit Margin: $4,313.20/23,522.40=18%
15. Return on Total Assets: $4,313.20/$28.46=151.55
16. Return on Stockholder’s Equity: $4,313.20/$12.38=336.18 17. Earnings Per Share: $4,313.20/$.016= 431,320
18. Price Earnings Ratio: $3.83/$1.625= 236%
19. Sales: $23,522.40/$22,786.60= 103%
20. Net Income: $4,313.20/$2,395.10=180%
Complete Case:
-What strategies would you recommend to current CEO Mike Duke? There are two main strategies that I would recommend to Mike Duke. The first would be Market Penetration. Wal-Mart has been successful in gaining customers from other electronic stores; however, I believe that their market share could be increased. In my personal opinion, Wal-Mart’s electronic section is equivalent to that of Best Buy. With increased consumer awareness of this, they could control a larger section of the market. Another strategy that could be used is Related Diversification. This can relate to their electronic Department by improving the products belonging to their in-house brand. Creating products equal in features to the name brands would create a possibility for increased consumption. -How can Wal-Mart benefit from Internet retailing?

Wal-Mart can benefit from...
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