walmart

Walmart Stores vs Whole Foods Markets
Working Capital;
Walmart;
Working capital = Total current assets-Total current liabilities
Increase in total current assets in the year 2014 is (61985-59940) =USD 1245
Decrease in total current liabilities in the year 2014 is (69345-71818) =USD-2473

Therefore; working capital is 1245--2473=USD 3718

Whole Foods;
Decrease in total current assets in the year 2013 is (2103000-1980000) =USD123000
Increase in current liabilities in the year 2013 is (1088000-977000) =USD111000

Therefore; working capital=-123000-111000=USD -234000

Current Ratios;
Walmart;
Current ratio = Current Assets/Current Liabilities
Current Assets=1245
Current Liabilities=2473
Therefore; current ratio=1245/2473=0.5034
Having a ratio of less than 1 shows that the company’s liabilities exceed the assets and therefore, the company may not be able to pay off its financial obligations using the assets.
Whole Foods;
Current Assets=-123000
Current Liabilities=-111000
Therefore, Current ratio=-123000/-111000=1.1081
The firm’s ratio is more than 1 showing its financial ability to pay off liabilities with its assets.

Ratio of Liability to Stockholders’ Equity;
Debt to Equity Ratio=Total Liabilities/Stockholders’ Equity
Walmart;
Increase in Total Liabilities = (128496-126762) =1734
Decrease Stockholders Equity= (76255-76353) =-98
Therefore, debt to equity ratio= 1734/-98=-17.6939
A ratio of less than 1 shows that a greater proportion of assets is contributed by the stockholders and indicates a greater protection for the money of creditors.
Whole Foods;
Increase in stockholders’ equity= (3878000-3802000) =76000
Increase in liabilities= (1660000-1492000) = 168000
Therefore, debt to equity ratio = 168000/76000=2.2105
A higher than 1 ratio indicates that a greater proportion of the company’s assets are contributed by creditors. This shows that stockholders want to get benefit from the creditors.
From the analysis of both companies, it can be concluded that both