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Over a 10-year period, Wal-Mart's revenues grew at a compound annual growth rate of 12.8% and its net income grew at a rate of 13.8%.
Over a 10-year period, Wal-Mart's revenues grew at a compound annual growth rate of 12.8% and its net income grew at a rate of 13.8%. This indicates that Wal-Mart's profitability grew slightly faster than its revenue growth rate, suggesting that its cost management was effective. Its cost of sales growth rate is 12.5%, but its operating expenses growth rate is higher at 14.1%, which poses a risk to its long-term sustainability. Target's 5-year revenue growth rate of 11.1% and net income growth rate of 15.7% indicate good expense control. However, like Wal-Mart, Target's operating expenses are growing faster than its revenues, suggesting potential problems across the industry. How can I response
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