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Comparison between two retail companies picked are Walmart and Costco

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...

Investment Strategy ; Look before you leap

Indian economy appears to be elusive; the stock market is bullish so the consumer market and all other. It is incomprehensible how the poorest of the poor Indians manage to survive with the skyrocketed prices of all most everything; from potato to pea-nuts, salt to sugar and egg to meat! The prices of many vegetables, edible oils, cereals, grams have broken all time records. But surprisingly there is no much furor over this. Is it only the middle class who are affected by this price rise? Are the people living below poverty line (they may constitute more than 60% actually despite of any official figures) being adequately supplied with subsidized food stuffs? Keeping Indian standard of distribution system through the mechanism available with various states in mind, you can be rest assured that it has never happened. What might have happened; the plight of the poor is not highlighted either by media or any political party for the reason best known to them. Their voices are maimed in most of the places or they are raising their voices through ultra like movements ( as Naxalites). We don’t come across urban poor discussing about the exorbitant price rise of food stuffs or hunger, this is really surprising again. How a man with more or less the same wage what he used to get few years ago; can manage to keep his body and soul together with prices are higher by two to three times or sometime even more!

The vast majority of Indian sub-continent has no concern for share price index. Only the riches and urban middle class are bothered of share price index. With every rise and fall in the SENSEX there are lots of comments we hear from experts about Indian economy. Most of them opine it is brighter than any other economy in this planet but fail to advance any solution for the common man’s economy. We all know when the prices of common men’s items go haywire; they are hardly left with any surplus fund to buy consumer goods or make any investment. With the share price index spiraling higher and higher; who is funding it or where from the funds are coming? There should be plunge in the demand of consumer goods and so with all other secondary markets. As a chain reaction, with domestic demands for industrial goods (since common men’s money is sucked by their cost of living) weakening day by day, falling exports with recession struck global demand; the only exception is bullish stock prices.

Obviously the market is zooming high because of overseas funds and with domestic fund managers’ manipulations (!); may be as the government is currently in the divestment spree and many public issues are in the pipe line; so the stage is ready. It will not be a surprise if the share price index make a free fall soon after this drama is over.

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