Wk 4 Summative Assessment

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West Georgia Technical College *

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571

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Economics

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Jan 9, 2024

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Shetamarah Willis Wk. 4 Summative Assessment Financial Market Shareholder Analysis Kenneth Baker
Evaluate economic conditions that influence company performance. Considering political corruption in the government can lead to loss of sales for Walmart resulting in loss of profits. Labor laws can also have a big impact on Walmart. Environmental problems like natural disasters can damage stores, slow down the supply chain and reduce sales because of closures. Currency (money), Walmart operates in over 20 countries, so its profitability is affected by fluctuating exchange rates. The U.S. dollar mare imports cheaper and exports more expensive. Global economics, more jobs that increase the economy therefore people will spend more resulting in more sales for Walmart. Competitors like Amazon and Costco can also impact Walmart. Government influences on economic conditions Trade agreements can reduce tariffs and other trade barriers, which can benefit Walmart by lowering its costs and making it easier to access new markets. Compare market conditions from the previous year with the company’s performance for that same year. 2022 market conditions revenue was $572.8 billion up 8.7% or 9.8% in constant currency. 2023 market conditions revenue is $611 billion 5,23% increase from 2022. In conclusion the market conditions that year influenced the company’s performance, such as interest rates, Federal Reserve Bank monetary policy changes increased interest rates, and begins the process of lowering the balance sheet. Analyze year-over-year performance from the past two years. Consider key metrics or ratios such as trailing PE ratio, forward PE ratio, price to book, return on assets, and return on equity in your conclusions. July 28, 2022 Walmart’s P/E ratio is about 27.22, Walmart shares trade in the mart for 27 times per share. Walmart’s forward P/E is standing at 15.5 which is less than the P/E ratio. Price to
book ratio is currently at 1.8 this a great range to be in. ROA is 6.6% and the ROE is 14.9%. (investopeda) Walmart’s income has been increasing over the past years. Despite store closures and lawsuits Walmart’s business is steadily increasing. References www.macrotrends.net www.investopedia.com
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