Corporate Performance and Financial Goals
The main goal of financial management is to maximize the wealth of the shareholders. In simple terms, this means the goal of any business is to use its resources efficiently while earning the highest profits possible. Another goal of financial management is to minimize risk. While financial managers want to earn maximum returns, they do not want to put their company in jeopardy. Firms want maximum returns at minimum risk while attracting capital, providing stable employment for their people, and benefiting the community. The way firms go about reaching these goals varies with each individual company.
When financial analysts evaluate a company, they look at how well a company is doing at achieving its goals, in addition to how well they are doing as compared with their competitors. A key feature of financial analysis is this comparison. Comparisons lend perspective to the analysis.
For example, a company may have a current ratio of 2:1. This means the company has twice as many current assets as they have current liabilities. At first glance, it appears this company is doing well and has plenty of cash to cover its current obligations. However, if the industry average current ratio is 3:1, then we have a problem. While the company is doing well, it is not doing nearly as well as its competitors.
For this discussion, please complete the following tasks:
1. Download the discussion table template (attached).
Research the publicly traded company that you have been assigned (Walmart).
Identify the company in the first sentence of your post. Highlight the company’s name, at the top of your post.
Navigate to the MSN Money website (https://www.msn.com/en-us/money?id=a3oxnm). Enter your company name in the Quote search box. Then record the following information on the table for the most recent two years. This information will be found on the “Financials” and “Analysis” tabs of the MSN Money stock quote page.
Total Revenue
Net Income
Total Assets
Total Liabilities
Total Equity
Earnings per Share
Free Cash Flow
Current Ratio
Profit Margin
ROE
Debt to Equity ratio
In your original post, answer the following:
At the beginning of your post, copy and paste your completed table and summary.
Create a brief summary of the main business operations (An appropriate response is approximately two paragraphs.).
Are there any significant changes in financial performance from one year to the next?
How does this company compare to its competitors?
Have there been any significant opportunities or problems that this company has encountered that would help to explain its current financial position?
Do you see any events in the future that may impact this company?
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