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
In the first part I discussed why I thought of writing this article. The current generations, many with their thick pay packet know not how to spend or invest prudently. Their working conditions will hardly permit them to continue till superannuation. Most of them are likely to take early retirement form their professional life (but not from life). So what harvest they will have depends upon how they reap now.
First of all budgeting is most important factor in young professional’s life. Unless you do that you wonder where your money goes! Writing a budget shows actually how do spend and shows the area and how you can control them. You can identify the area needs to be controlled. Never forget to add the expenses you do on shopping and entertainment and include your savings too. Keep a track on your utility bills and keep comparing them. Mind you the plastic money or credit cards are major boosters to spending. Not that they do not have any role to play. At an odd hours, god forbid, you need to meet a medical or hospital bill , then you find the credit card is a blessing. It turns a curse, when you over spend and keep repaying the bill in installments with high interest. Interest rates are as high as 42%! So, beware of using credit cards, think twice before you take it out from your wallet.
Start the saving early even it may be of smaller amount, but save it regularly. You do not know the strength of compounding. Open a recurring deposit account with any bank for longer tenure, preferably when interest rate is high, since it fluctuates off and on. Buy some mutual funds scheme under SIP (systematic investment plan), when a particular amount will be invested by you every month and this will cushion the market fluctuation. Even you can do both with as little as Rs500/- per month.
This should be starting point of any investment plan. You should set the objective like short, medium and long term. This should be adjusted to your future program, like marriage, son`s education, buying a house or car et al. Early you save better you gain later; this is specially a reality for buying insurance covers. Since lesser the age, lesser the premium and now all the insurance companies offer unit linked insurance plans besides their age old conventional plans. Better spread you investment in buying insurance cover. For basic cover go for term insurance, it may or may not have return. But with low premium it offers maximum covers. What is the amount of cover you should buy? The rule of the thumb is just six times of your annual income. As the income grows in tandem with that you should increase the amount of your cover too. These all are your primary investments. Beyond them there is wide horizon of investment market. The stock, commodity and currency markets offer immense scope of investments with its inherent risk. Learn first from various resources including sites, how to invest in the market and how the mood of market changes. Identify the stocks which are called blue chips, dark horse and penny stocks. Judge your capacity and risk appetite; then invest in stock or commodity market. If you are a income tax payer then you must think of some tax savings scheme. One of the is Public Provident Fund. Its tenure is 15 years , thereafter renewable by 5 years every time. Though the current interest rate being 8 per cent is not attractive but keeping the long term yield, it is one of the best options. These days all the mutual funds offering various schemes with lock in period for three years. Many of them are good and the best part of it , even with Rs500/- you can join them. Mind you slow but steady wins the race…….this old adage, still holds good for investors in the stock market.
So, bon voyage !
First of all budgeting is most important factor in young professional’s life. Unless you do that you wonder where your money goes! Writing a budget shows actually how do spend and shows the area and how you can control them. You can identify the area needs to be controlled. Never forget to add the expenses you do on shopping and entertainment and include your savings too. Keep a track on your utility bills and keep comparing them. Mind you the plastic money or credit cards are major boosters to spending. Not that they do not have any role to play. At an odd hours, god forbid, you need to meet a medical or hospital bill , then you find the credit card is a blessing. It turns a curse, when you over spend and keep repaying the bill in installments with high interest. Interest rates are as high as 42%! So, beware of using credit cards, think twice before you take it out from your wallet.
Start the saving early even it may be of smaller amount, but save it regularly. You do not know the strength of compounding. Open a recurring deposit account with any bank for longer tenure, preferably when interest rate is high, since it fluctuates off and on. Buy some mutual funds scheme under SIP (systematic investment plan), when a particular amount will be invested by you every month and this will cushion the market fluctuation. Even you can do both with as little as Rs500/- per month.
This should be starting point of any investment plan. You should set the objective like short, medium and long term. This should be adjusted to your future program, like marriage, son`s education, buying a house or car et al. Early you save better you gain later; this is specially a reality for buying insurance covers. Since lesser the age, lesser the premium and now all the insurance companies offer unit linked insurance plans besides their age old conventional plans. Better spread you investment in buying insurance cover. For basic cover go for term insurance, it may or may not have return. But with low premium it offers maximum covers. What is the amount of cover you should buy? The rule of the thumb is just six times of your annual income. As the income grows in tandem with that you should increase the amount of your cover too. These all are your primary investments. Beyond them there is wide horizon of investment market. The stock, commodity and currency markets offer immense scope of investments with its inherent risk. Learn first from various resources including sites, how to invest in the market and how the mood of market changes. Identify the stocks which are called blue chips, dark horse and penny stocks. Judge your capacity and risk appetite; then invest in stock or commodity market. If you are a income tax payer then you must think of some tax savings scheme. One of the is Public Provident Fund. Its tenure is 15 years , thereafter renewable by 5 years every time. Though the current interest rate being 8 per cent is not attractive but keeping the long term yield, it is one of the best options. These days all the mutual funds offering various schemes with lock in period for three years. Many of them are good and the best part of it , even with Rs500/- you can join them. Mind you slow but steady wins the race…….this old adage, still holds good for investors in the stock market.
So, bon voyage !
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