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
|