The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c
Inflation is that when too much of money chases too little of things. The gap between demand and supply increases thus causes inflation. During inflation, what happens, you find the price is ever rising with no immediate sign of halt. It may continue for years some time. The flood, draught, or other natural calamities may act as an additive. These days, in the era of globalization it is practically impossible to insulate oneself (read here any country or nation) against global trend. Be it inflation or recession or deflation; when a major economy is struck by any one of them, it has to infect many other countries, whoever has trading relations with them. This is having a cascading affect as those countries would infect in turn others who are in dealings with them. So the chain continues. As this is evident at present, the fuel price hike by OPEC countries has affected developed, developing and poor countries simultaneously. This has triggered the food crisis surreptitiously. Strange is that, not so? In a fray to find some alternative of fossil fuel and at the same time cut down the ever increasing import bill on account fuel imports, many countries have been looking for bio-fuel. That has catapulted the food grain shortage due to lack of production. As much of the cultivable land were allocated for bio-fuel. Even President Bush blamed emerging Chinese and Indian middle class for their garrulous consumption. Ironically what his own countrymen are famous for. After all passing the blame on others to save own face for any wrong doings, is an old practice. He rightly chose that in most opportune moment as the campaign of American Presidential election is gaining tempo.
Well, history teaches us that such things come and go, it is matter of time. It was just after 2nd world war , inflation took a frenzy flight. The clashes of various “ism”s lasted for few decades, claiming each better than all other. At last the best is what God ever created i.e capitalism, all agree to it, though through different covert widows. The history shows us, that the riches and super riches survive to rule and the poor too survive to be ruled through any crisis , the world had ever faced. The big question is what about the middle class? The history of middle class is not too old, it is hardly 100 years or less. So their survival is not guaranteed by any historical evidence. They do not have much, but whatever they have they cannot survive without. God forbid, if the current trend of global recession, inflation continues for long, not too long the clan of middle class will sustain like many species which failed to prove themselves fittest for survival.
In the developing countries like India, the inflation rate has touched all time high in the last two decades. The value of paper money is eroding fast. The bank rate is lesser than the rate of inflation (which is currently 9% as per the Govt. release, but actually 80-90% for those whose major part of earning goes to grocers). Share market is uncertain in the present scenario; in the event of recent US crisis; Indian industries are likely go out of work, which are more dependent on US exports. Indian banking system is waiting for another sub-prime crisis of Indian version, for their over emphasis in disbursement of personal and housing loans for the past few years.
The economy going tumble tosser, the middle class, in the quest to protect their hard earned money of its value, better keep in mind what French President Da Gaulle said in 1965 : 'Indeed, there can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be shaped into ingots, bars, and coins, which has no nationality, and which is eternally and universally accepted as the unalterable fiduciary value par excellence.' Not that I suggest to go without bank account, or investment in stock or mutual funds but to focus the time tasted GOLD, which sans rusts or losing value.
e.'
Well, history teaches us that such things come and go, it is matter of time. It was just after 2nd world war , inflation took a frenzy flight. The clashes of various “ism”s lasted for few decades, claiming each better than all other. At last the best is what God ever created i.e capitalism, all agree to it, though through different covert widows. The history shows us, that the riches and super riches survive to rule and the poor too survive to be ruled through any crisis , the world had ever faced. The big question is what about the middle class? The history of middle class is not too old, it is hardly 100 years or less. So their survival is not guaranteed by any historical evidence. They do not have much, but whatever they have they cannot survive without. God forbid, if the current trend of global recession, inflation continues for long, not too long the clan of middle class will sustain like many species which failed to prove themselves fittest for survival.
In the developing countries like India, the inflation rate has touched all time high in the last two decades. The value of paper money is eroding fast. The bank rate is lesser than the rate of inflation (which is currently 9% as per the Govt. release, but actually 80-90% for those whose major part of earning goes to grocers). Share market is uncertain in the present scenario; in the event of recent US crisis; Indian industries are likely go out of work, which are more dependent on US exports. Indian banking system is waiting for another sub-prime crisis of Indian version, for their over emphasis in disbursement of personal and housing loans for the past few years.
The economy going tumble tosser, the middle class, in the quest to protect their hard earned money of its value, better keep in mind what French President Da Gaulle said in 1965 : 'Indeed, there can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be shaped into ingots, bars, and coins, which has no nationality, and which is eternally and universally accepted as the unalterable fiduciary value par excellence.' Not that I suggest to go without bank account, or investment in stock or mutual funds but to focus the time tasted GOLD, which sans rusts or losing value.
e.'
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