Scribd
Upload
29 views3 pages

Retail Market Strategy: China World Wide

Walmart's retail strategy in China focuses on opening large super centers in rural towns and promoting low prices. The financial summary shows that between 2005 and 2003, Walmart's net sales increased while costs of goods sold also rose. However, net profit margins increased over this period, indicating Walmart became more efficient at converting revenue to profits by controlling expenses. Inventory levels and ratios decreased slightly from 2005 to 2003, suggesting Walmart improved its ability to generate revenue from total assets.

Uploaded by

Devanshi Kashyap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
29 views3 pages

Retail Market Strategy: China World Wide

Walmart's retail strategy in China focuses on opening large super centers in rural towns and promoting low prices. The financial summary shows that between 2005 and 2003, Walmart's net sales increased while costs of goods sold also rose. However, net profit margins increased over this period, indicating Walmart became more efficient at converting revenue to profits by controlling expenses. Inventory levels and ratios decreased slightly from 2005 to 2003, suggesting Walmart improved its ability to generate revenue from total assets.

Uploaded by

Devanshi Kashyap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 3

RETAIL MARKET STRATEGY

China
Positioning

Super Centers

Store Location

Rural Town

Price

Low Price

Promotion
Store Atmosphere

World wide

Low Price

Wal Mart Financial Summary


Dollar Amount in
Million
2005

2004

2003

Net Sales

285222

256329

229616

COGS

219793

198747

178299

Gross Margin (Net Sales - COGS)

65429

57582

51317

Operating Expenses

51105

44909

39983

Interest Expenses

986

832

927

Total Expenses

52091

45741

40910

Net PBT

13338

11841

10407

Total Assets

120223

105405

92900

Inventories

29447

26612

24401

Net Profit Margin

Owners Equity
Net Sales - COGS - Expenses/ Net Sales

Inventory Asset Ratio

Net Sales/ Total Assets

49396
43623
39461
4.6764
4.6195
4.5323
2.3724412 2.4318485 2.4716469
13
84
32

ANALYSIS
As the Net profit margin is increasing, it indicates as of how efficient the company is and
how well it controls its costs. The higher the margin is, the more effective the company is
in converting revenue into actual profit.
As the Inventory asset ratio has decreased over a period of time, it shows the ability to
generate less revenues over the total assets for the following year as compared to
previous year.
High inventory turnover ratio implies either strong sales or ineffective buying (the
company buys too often in small quantities, therefore the buying price is higher).A high
inventory turnover ratio can indicate better liquidity, but it can also indicate a shortage or
inadequate inventory levels, which may lead to a loss in business.
The financial leverage ratios measure the overall debt load of a company and compare it
with the assets or equity. Here it is showing how much of the company assets belong to the
shareholders rather than creditors.

You might also like