Question: Despite being the largest retailer in the world, Wal-Mart operates in a highly competitive environment. This is especially true considering the recent financial crisis. Hence,

Despite being the largest retailer in the world, Wal-Mart operates in a highly competitive environment. This is especially true considering the recent financial crisis. Hence, it is important for Wal-Mart’s management to track the success of the company. In the Management’s Discussion and Analysis section of its 2009 Annual Report, Wal-Mart mentions a number of metrics used to track the company’s performance—including Total Sales, Comparable Store Sales, Operating Income, and Free Cash Flow. Discuss how each of these metrics can be used to help management understand Wal-Mart’s performance. What other metrics might Wal-Mart use to track performance?

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1 Total Sales WalMart tracks the trend of total sales to determine whether or not it is obtaining more business with each passing year To make a bette... View full answer

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