Topic
Wal-Mart Solvency
Instructions
Explain in 1,050 words how the company you selected compares to the industry averages in terms of financial profitability, liquidity, and solvency, and why the difference is important. Also, review the financial statements over the last three years, and discuss any positive and negative trends would you report to the company’s management.
Minimum required references include your textbook and your chosen firm’s Plunkett Company Profile page.
Answer Preview
From our analysis above of the Wal-Mart solvency ratios, there was a general decline or deterioration of the three solvency ratios from 2015 to 2016. However, there was an improvement in all three years from 2016 to 2017. The solvency ratio tells us the ability of the company to meet its obligations and debts. The Wal-Mart solvency ratios are well above 20%, indicating that the company has the ability to meet both its short-term and long-term obligations.
Word Count: 300