Financial Research Report

To start with, the following is a brief description of Walmart, the company used in this paper. Walmart is a multinational retail corporation operating in discount department stores as well as warehouse stores. Its headquarters is in Bentonville, Arkansas. Sam Walton founded Walmart in 1962. The company was incorporated on thirteenth October 1969. Currently it has over 11000 stores in the US and Canada. The company has extended its operations to other countries, some of which include Mexico, where it operates under the name Walmart de Mexico Centro America, United Kingdom where it operates as Asda, and in Japan where it operates using the name Seiyu. It also has operations in Argentina, Brazil, and India.

…………middle of paper……..

In conclusion, Walmart is generally performing well based on the profitability ratios. Based on the earnings per share and the prices earnings ratio, the company has a promising future. The general expectation is that the price earnings ratio will maintain the increasing trend experience in the past years. The fact that Walmart is not optimum means that the company has more room for increasing its productivity. Also, Walmart has a safe financial leverage, implying that it would be safe to invest in it without worrying about it going bankrupt (Thomsett, 2014). Based on the above analysis, an investing in Walmart will have a positive return.

References
Barish, N. N. (2012). Rationale for Investment Decisions in Emerging Countries. Management International, 2(5): 87-94.
Mercer, B. (2013, May 10). The Social Costs of Choice, Free Market Ideology and the Empirical Consequences of the 401(k) Plan Large Menu Defense. Retrieved from http://static1.1.sqspcdn.com/static/f/1387975/23165578/1374604227747/the-social-costs-of-choice-free-market-ideology-and-the-emperical-consequences-of-the-401k-plan-large-menu-defense.pdf?token=eez%2FaZ1sBzLMm%2FHlDSoLkKRJNAM%3D
Nasdaq. (2015, June 11). WMT Company Financials. Retrieved from Nasdaq: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCUQFjABahUKEwja6pWQlYrGAhVEPxQKHalvAPQ&url=http%3A%2F%2Fwww.nasdaq.com%2Fsymbol%2Fwmt%2Ffinancials%3Fquery%3Dratios&ei=r9F6VZrXA8T-UKnfgaAP&usg=AFQjCNGrlHLg3SCiQvnn5sffXO
Thomsett, M. C. (2014). Options Trading for the Institutional Investor: Managing Risk in Financial Institutions. New York: FT Press.
Wahlen, J., Baginski, S., & Bradshaw, M. (2014). Financial Reporting, Financial Statement Analysis and Valuation. New Tech Park: Cengage Learning.

  • Length: 2061 Words (7)
  • Rating:Stronger Essays
  • Price: $31.50