Question
The following table contains financial statement information for Walmart Stores Inc. $ millions Total Assets Net Income Sales Equity 2015 199,581 14,694 478,614 80,546 2014
The following table contains financial statement information for Walmart Stores Inc.
| $ millions | Total Assets | Net Income | Sales | Equity |
| 2015 | 199,581 | 14,694 | 478,614 | 80,546 |
| 2014 | 203,490 | 16,363 | 482,229 | 81,394 |
| 2013 | 204,751 | 16,022 | 473,076 | 76,255 |
Questions
A. Compute the return on equity (ROE) for 2014 and 2015. What trend, if any, is evident? How does Wal-Mart's ROE compare with approximately 18.9% ROE for companies in the Dow Jones Industrial average of 2015?
B. Compute the return on assets for 2014 and 2015. What trends, if any, are evident? How does Wal-Mart's ROA compare with the approximate 7.1% median ROA for companies in the DOW Jones Industrial average for 2015?
C. What factors might allow a company like Walmart to reap above-average returns?
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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
9781133169949, 538751347, 978-0538751346
