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  • Liquidity:: Internal Analysis (Financial Ratio)

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    This document summarizes financial ratios for a company in 2009 and 2008. It analyzes ratios related to liquidity, leverage, activity, and profitability. The current ratio and quick ratio decreased slightly from 2008 to 2009, indicating lower liquidity. Debt ratios were stable at 60% in both years. Inventory turnover and asset turnover increased from 2008 to 2009. Gross and operating profit margins decreased slightly, while returns on assets and equity were steady at 8% and 20-21% respectively. Earnings per share grew from $3.13 to $3.40 over the period.

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    Internal analysis ratio

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    This document summarizes financial ratios for a company in 2009 and 2008. It analyzes ratios related to liquidity, leverage, activity, and profitability. The current ratio and quick ratio decreased slightly from 2008 to 2009, indicating lower liquidity. Debt ratios were stable at 60% in both years. Inventory turnover and asset turnover increased from 2008 to 2009. Gross and operating profit margins decreased slightly, while returns on assets and equity were steady at 8% and 20-21% respectively. Earnings per share grew from $3.13 to $3.40 over the period.

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    29 views6 pages

    Liquidity:: Internal Analysis (Financial Ratio)

    Uploaded by

    aisha_humaira_8
    This document summarizes financial ratios for a company in 2009 and 2008. It analyzes ratios related to liquidity, leverage, activity, and profitability. The current ratio and quick ratio decreased slightly from 2008 to 2009, indicating lower liquidity. Debt ratios were stable at 60% in both years. Inventory turnover and asset turnover increased from 2008 to 2009. Gross and operating profit margins decreased slightly, while returns on assets and equity were steady at 8% and 20-21% respectively. Earnings per share grew from $3.13 to $3.40 over the period.

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    of 6

    Internal Analysis (Financial Ratio)

    Liquidity:

    Current Assets
    Current Ratio=
    Current Liabilities

    48,949
    current ratio09=
    55,390

    ¿ 0.88׿

    48,020
    current ratio08=
    58,478

    ¿ 0.82׿

    (Current Assets−Inventory)
    Quick Ratio=
    Current Liailities

    48,949−34,511
    quick ratio09=
    55,390

    ¿ 0.26׿

    48,020−35,159
    quick ratio08=
    58,478

    ¿ 0.22׿

    Leverage:

    Total debt
    Debt−¿−Total− Assets Ratio=
    Total Assets

    98,144
    Debt ¿ Total Assets Ratio ¿09=
    163,429

    ¿ 0.60׿

    98,906
    Debt ¿ Total Assets Ratio ¿08=
    163,514

    ¿ 0.60׿

    Total debt
    Debt−¿−Equity Ratio=
    Total Stock Holders Equity

    98,144
    Debt ¿ Equity Ratio¿09 =
    65,285
    ¿ 1.50׿

    98,906
    Debt ¿ Equity Ratio ¿08 =
    64,608

    ¿ 1.53׿

    Long−Term Debt
    Long−Term Debt −¿−Equity Ratio=
    Total Stock Holders Equity

    31,349
    Long−Term Debt ¿ Equity Ratio ¿09=
    65,285

    ¿ 0.48׿

    29,799
    Long−Term Debt ¿ Equity Ratio ¿08=
    64,608

    ¿ 0.46׿

    Profits Before Interest ∧Taxes


    ¿ Interest Earned Ratio=
    Total Interest Changes

    20,898
    ¿ Interest Earned Ratio09=
    499

    ¿ 41.88 days

    20,159
    ¿ Interest Earned Ratio08=
    406

    ¿ 49.65 days

    Activity:

    Sales
    Inventory Turnover=
    Inventory of Finished Goods

    405,607
    Inventory Turnover 09=
    34,511

    ¿ 11.75׿

    378,476
    Inventory Turnover 08=
    35,159

    ¿ 10.76׿

    Sales
    ¿ AssetsTurnover =
    ¿ Assets
    405,607
    ¿ AssetsTurnover 09=
    125,820

    ¿ 3.22׿

    378,476
    ¿ AssetsTurnover 08=
    122,256

    ¿ 3.10׿

    Sales
    Total Assets Turnover=
    Total Assets

    405,607
    Total Assets Turnover 09=
    163,429

    ¿ 2.48׿

    378,476
    Total Assets Turnover 08=
    163,514

    ¿ 2.31׿

    Annual Creadit Sales


    Account Receivable Turnover=
    Account Receivable

    405,607
    Account Receivable Turnover 09=
    3,905

    ¿ 103.87׿

    378,476
    Account Receivable Turnover 08=
    3,642

    ¿ 103.92׿

    Account Receivable
    Average Collective Period=
    Total Creadit Sales/365

    3,905
    Average Collective Per iod 09 =
    405,607/365

    ¿ 3.51 days

    3,642
    Average Collective Period 09 =
    378,476/365

    ¿ 3.51 days

    Profitability:
    Sales−COGS
    Gross Profit Margin=
    Sales

    405,607−306,158
    Gross Profit Margin09=
    405,607

    ¿ 0.25

    378,476−286,350
    Gross Profit Margin09=
    378,476

    ¿ 0.24

    EBIT
    Operating Profit Margin=
    Sales

    20,898
    Operating Profit Margin09=
    405,607

    ¿ 0.05

    21,952
    Operating Profit Mar gin 08=
    378,476

    ¿ 0.06

    Net Income
    Return on Total Assets ( ROA )=
    Total Assets

    13,400
    R eturn on Total Assets 09=
    163,429

    ¿ 0.08

    12,731
    R eturn on Total Assets 08=
    163,514

    ¿ 0.08

    Net Income
    Return on Equity ( ROE )=
    Total Stock Holders Equity

    13,400
    Return on Equity 09=
    65,285

    ¿ 0.21

    12,731
    Return on Equity 08=
    64,608

    ¿ 0.20
    Net Income
    Earning Per Share ( EPS )=
    Number of Shares of Common Stock Outstanding

    Earning Per Share09=$ 3.40

    Earning Per Share08=$ 3.13

    UNIVERSITI MALAYSIA SABAH


    LABUAN INTERNATIONAL CAMPUS

    GT 30003
    STRATEGIC MANAGEMENT AND
    BUSINESS POLICY

    TOPIC:
    Wal-Mart Stores, Inc. - 2009

    NAME MATRIC. NO
    NUR SYAZWANI BTE RAJELI BG 08110194
    AHMIDA BINTI SINGKINA BG 08110044
    DG HAMIZAH BINTI ASMAT BG 08110288
    AMY BINTI ABDUL WAHID BG 08110048
    NUR HAZWANI BINTI MUHAMAD SHAFIE BG 08110386
    ZAMZILA BINTI ZAINOL BG 08110140
    TUISA BINTI ASIS BG 08110363

    Prepared for:
    Miss. NURHAMIZA MUMIN @ OSMAN

    Submission Date:
    16 March 2011

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