Interpretation
Wal-mart’s net sales have grown consistently from financial year 2008 to 2011 as shown in the bar graph above. The growth in net sales was highest between years 2008 and 2009, followed by the year 2010-2011 periods. The growth was modest between 2009 and 2010 financial years.
Profit also grew consistently during the four year period. Net profit as a percentage of sales was highest in year 2008 as a result of low operating expenses. Operating expenses were significantly high in 2009 and 2010, hence, causing lower net income as a percentage of sales. As a result of increased sales in year 2011, this ratio rose to 6.09 percent, up from 5.92 percent in year 2010 (Wal-Mart Financial Report, 2011).
References
Wal-mart Stores Inc. (2011). Financial Report. New York: Walmart Stores Inc.