Market summary and value calculation – wal-mart

Wal-Mart’s financial assets can be calculated by completing ratio analyses for the company for the last three fiscal years in several key categories. To begin, one can look at Wal-Mart’s current ratio which represents its ability to pay back short-term debts with available liquid resources and is calculated as follows: Current Ratios = Current Assets / Current Liabilities. As an example, if the company has $30 million worth of liabilities and $50 million worth of assets then its ratio is 1.67. ($30 million/$50 million).

A return on asset is another important metric that measures the efficiency of a business in generating profits. This can be calculated using this formula: Net Income/Total Assets. Finally, debt to equity ratio provides insight into how much of a company’s capital comes from creditors versus shareholders and is usually represented as follows: Debt to Equity Ratio = Total Liabilities / Shareholders’ Equity. Utilizing these ratios along with other financial data for Wal-Mart over the past three years should provide sufficient information needed to accurately assess the total value of the company’s financial assets.