Analyze the short-term liquidity and operating efficiency

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Reference no: EM13899453

Using the ratios and information given for Walmart, a retailer, analyze the short-term liquidity and operating efficiency of the firm as of January 31, 2011.

Financial ratios for the years ended January 31
	2011	2010
Liquidity
Current (times)	0.89	0.86
Quick (times)	0.27	0.28
Cash flow liquidity (times)	0.53	0.61
Average collection period	5 days	4 days
Days inventory held	42 days	40 days
Days payable outstanding	39 days	37 days
Cash conversion cycle	8 days	7 days
Activity
Fixed asset turnover (times)	3.99	4.07
Total asset turnover (times)	2.32	2.38
Other information
Cash flow from operations (in millions of $)	23,643	26,249
Revenues (in millions of $)	418,952	405,132

Reference no: EM13899453

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