Walmart Target Ratio Analysis Paper
Running head: WALMART & TARGET
Wal-Mart and Target Ratio Analysis and Statement of Cash Flows
22 March 2004
Wal-Mart and Target Ratio Analysis and Statement of Cash Flows
Internal and external stakeholders of a company require ways of looking at how a company operates to determine the viability of that company. The best way to approach stock valuation is by using many different methods, the same way you would if you were valuing a used car or a house. Checking out what similar houses in a neighborhood have sold for is akin to relative valuation, and walking through a house you 're interested in--looking at the construction and quality of materials--is similar to intrinsic valuation. A judicious mix of both methods …show more content…
Wal-Mart took a leadership position in its industry and in the country to help bring the country back into positive financial position since Sept 11, 2001. The cash flow statement shows a steady growth of the business and tight controls of their cash. It appears that the company elects to maintain approx 2 billion in cash or cash equivalent for flexibility and operations. Any addition cash earned above the 2 billion is used for adding store locations, renovation, or buying back company stock while the stock market was …show more content…
Accounts payable represented a 400% percent increase and tax write-off increased by 300% over the previous years. In the financing area Wal-Mart brought back their own company stocks on the market. The dividends stayed consistent with the previous years. In prior years Wal-Mart raised money by issuing bonds to support their store growth. The bonds are maturing and the bond payments have shrunk compared to previous years. Wal-Mart has become the world 's largest retailer by offering low prices and one-stop shopping. Supercenter stores, which combine groceries with general merchandise, have been the company 's fastest-growing division over the past five years. Wal-Mart is also expanding overseas through
Wal-Mart and Target Ratio Analysis and Statement of Cash Flows
22 March 2004
Wal-Mart and Target Ratio Analysis and Statement of Cash Flows
Internal and external stakeholders of a company require ways of looking at how a company operates to determine the viability of that company. The best way to approach stock valuation is by using many different methods, the same way you would if you were valuing a used car or a house. Checking out what similar houses in a neighborhood have sold for is akin to relative valuation, and walking through a house you 're interested in--looking at the construction and quality of materials--is similar to intrinsic valuation. A judicious mix of both methods …show more content…
Wal-Mart took a leadership position in its industry and in the country to help bring the country back into positive financial position since Sept 11, 2001. The cash flow statement shows a steady growth of the business and tight controls of their cash. It appears that the company elects to maintain approx 2 billion in cash or cash equivalent for flexibility and operations. Any addition cash earned above the 2 billion is used for adding store locations, renovation, or buying back company stock while the stock market was …show more content…
Accounts payable represented a 400% percent increase and tax write-off increased by 300% over the previous years. In the financing area Wal-Mart brought back their own company stocks on the market. The dividends stayed consistent with the previous years. In prior years Wal-Mart raised money by issuing bonds to support their store growth. The bonds are maturing and the bond payments have shrunk compared to previous years. Wal-Mart has become the world 's largest retailer by offering low prices and one-stop shopping. Supercenter stores, which combine groceries with general merchandise, have been the company 's fastest-growing division over the past five years. Wal-Mart is also expanding overseas through