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.
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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.
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