By analyzing existing basic indicators between Walmart and Vipshop, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Vipshop with a short position in Walmart. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Walmart has an asset utilization ratio of 267.89 percent. This implies that the company is making $2.68 for each dollar of assets. An increasing asset utilization means that Walmart is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Walmart or Costco is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Walmart dividends
A dividend is the distribution of a portion of Walmart earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Walmart dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Walmart one year expected dividend income is about USD1.39 per share.
Dividends Paid is likely to drop to about 3.5
B in 2024.
Dividend Yield is likely to drop to 0.01 in 2024.
Investing in dividend-paying stocks, such as Walmart is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Walmart must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Walmart. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Walmart's Liquidity
Walmart
financial leverage refers to using borrowed capital as a funding source to finance Walmart ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Walmart financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Walmart's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Walmart's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Walmart's total debt and its cash.
Correlation Between Walmart and Costco Wholesale Corp
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Walmart together with similar or unrelated positions with a negative correlation. For example, you can also add Costco Wholesale to your portfolio. If Costco Wholesale is not perfectly correlated to Walmart it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Walmart, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Walmart and Costco Wholesale in your portfolio? Please note if you are using this as a pair-trade strategy between Walmart and Costco Wholesale, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between WMT and COST for more information.
Breaking it down
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Walmart revenue. Based on the latest financial disclosure, Walmart reported 534.66
B of revenue. This is much higher than that of the Services sector and significantly higher than that of the
Discount, Variety Stores industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Vipshop Holdings we see revenue of 12.55
B, which is much higher than that of the Discount, Variety Stores
| WMT | 534.66 Billion | 97.54 |
| Sector | 956.4 Million | 0.17 |
| VIPS | 12.55 Billion | 2.29 |
Are Walmart technical ratios showing a collapse?
Walmart newest kurtosis boosts over 8.42. Walmart has low volatility with Treynor Ratio of 3.13, Maximum Drawdown of 8.76 and kurtosis of 8.42. However, we advice all investors to further analyze Walmart to make certain all market information is desiminated and is consistent with the current expectations about Walmart upside potential.
Our Final Take On Walmart
Whereas some firms within the discount, variety stores industry are still a little expensive, even after the recent corrections, Walmart may offer a potential longer-term growth to private investors. While some private investors may not share our view, we believe it may be a good time to increase your existing holdings in Walmart. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Walmart.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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