Question

Explain the overall health of the company Walmarl Inc. Financial wise.

Answer 1

The overall financial health of Walmart is :

Based on the liquidity ratios, the current ratio for 2019 is 0.8 which is not a very good sign of the liquidity position of this company. A good current ratio should be atleast 2. The quick ratio is also low 0f 0.23 and it should be 1 to be termed as a good quick ratio.

The profitability ratio are also quite low and has fallen in comparison to the previous year. The net profit margin is only 1.3% which is a very low ratio.

Activity turnover ratios are also low, the asset turnover ratio is only 2.35. The higher these ratios , indicates a better fianncial helath of the company. Fixed asset turnover is also low, although increases slightly over the previous year.

So, overall Walmart's financial health is in not a very good shape.