Financial Statment for Wal-Mart Stores Inc.
Comparing the financial performance between Wal-Mart and Amazon by the metrics :
Return on Equity Ratio(ROE):
This ratio demonstrates how efficiently the business is utilizing and deploying the equity, either invested in the business or generated by the business, to generate profits.
ROE= Net income/ avg shahloder equity
ROE in Wal-Mart stores is: 2.726840403
A ration of 272.6% would show the business is earning $2.73 in pretax or operating profit for each $1of equity employed in the business
ROE in Amazon is: 0.171580749(2009)
A ration of 17.2% would show the business is earning $0.172 in pretax or operating profit for each $1 of equity employed in the business
It shows the percentage of profits earned for each dollar of equity in the business. This is essentially the return for the money and time business owners and their investors have invested in the business. Further, the higher return on equity ratio is the better. As it shows the Wal-Mart stores ratio is higher than the Amazon's this indicate that Wal-Mart is better than Amazon in this metrics.
Return on Assets ratio (ROA):
This ratio demonstrates how efficiently the business is utilizing and deploying business assets to generate profits (not sales but overall operating profits).
ROA = Earning before interest / average total assets
ROA in Wal-Mart stores is: 0.089552578
A ratio of 9.00% would show the business is earning $0.09 in pretax or operating profit for each $1 of assets in the business
ROA in Amazon is: 0.066907336
A ratio of 6.7% would show the business is earning $0.067 in pretax or operating profit for each $1 of assets in the business
Shows the percentage of profits earned for each dollar of assets in the business. Management's main task in any business is to employ all the assets in the business in the most efficient manner to generate the greatest profits. The bigger this ratio, the better for the business. And as it shows, the Wal-Mart stores ratio is
Return on Equity Ratio(ROE):
This ratio demonstrates how efficiently the business is utilizing and deploying the equity, either invested in the business or generated by the business, to generate profits.
ROE= Net income/ avg shahloder equity
ROE in Wal-Mart stores is: 2.726840403
A ration of 272.6% would show the business is earning $2.73 in pretax or operating profit for each $1of equity employed in the business
ROE in Amazon is: 0.171580749(2009)
A ration of 17.2% would show the business is earning $0.172 in pretax or operating profit for each $1 of equity employed in the business
It shows the percentage of profits earned for each dollar of equity in the business. This is essentially the return for the money and time business owners and their investors have invested in the business. Further, the higher return on equity ratio is the better. As it shows the Wal-Mart stores ratio is higher than the Amazon's this indicate that Wal-Mart is better than Amazon in this metrics.
Return on Assets ratio (ROA):
This ratio demonstrates how efficiently the business is utilizing and deploying business assets to generate profits (not sales but overall operating profits).
ROA = Earning before interest / average total assets
ROA in Wal-Mart stores is: 0.089552578
A ratio of 9.00% would show the business is earning $0.09 in pretax or operating profit for each $1 of assets in the business
ROA in Amazon is: 0.066907336
A ratio of 6.7% would show the business is earning $0.067 in pretax or operating profit for each $1 of assets in the business
Shows the percentage of profits earned for each dollar of assets in the business. Management's main task in any business is to employ all the assets in the business in the most efficient manner to generate the greatest profits. The bigger this ratio, the better for the business. And as it shows, the Wal-Mart stores ratio is