Discussion Topic: Annual Reports of the Coca-Cola Company and Wal-Mart For this week's Discussion, you will review the annual reports of the Coca-Cola Company and Wal-Mart, two of the largest publicly traded firms in America. Coca-Cola and Wal-Mart Receivable Comparison Compute and compare the accounts receivable turnover ratios for Coca-Cola and Wal-Mart.
Indicate all numbers you used to calculate the ratio. What constitutes a "reasonable" accounts receivable turnover ratio?
What characteristic(s) of these companies would indicate that these ratios are reasonable? (Back up your answers with facts and cite website and text references used.)
An article recently appeared in the Wall Street Journal indicating that companies are selling their receivables at a record rate. Why might Coca-Cola and Wal-Mart sell their receivables?