Walmart

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because the company’s borrowing needs are mostly short term to manage working capital, this means that the company does not need to rely on long-term debt to finance its operations. Maintaining this ratio at such a lower level is a conservative policy so that the company’s solvency (ability to meet long-term obligations) does not get affected.
Wal-Mart’s Net Profit Margin as well as the Return on Equity ratios are within the industry average; and since both ratios measure the company’s profitability, then the company is profitable which is evidenced by the high P/E ratios for both years. Since the P/E ratio measures investors’ expectations about the firm, then Wal-Mart is a good investment.
The Gross Profit Margin is 24.4%, and 24.36% for 2006, and 2007, respectively, while the Net Profit Margin is 3.24%, and 3.36%, for 2006, and 2007, respectively. This means that the Operating Expenses for Wal-Mart are very high, but this is normal for the retail industry. Stores such as ...

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