Based upon the learning activities in Topic 1, you should now understand that positive working capital is normally a good thing in managing liquidity and profitability. Explain how Wal-Mart manages its working capital efficiently. In addition, compare and contrast the working capital management strategy used by Wal-Mart with the working capital management strategy used by one of the next five big retailers such asCostco, Home Depot, Target or Kroger. So, how does Wal-Mart manage its cash, accounts receivables, inventory and accounts payable in a way that allows them to be more profitable than Target? Hint: Calculate the cash conversion cycle for both Wal-Mart and Targetand then compare the components.

Based upon the learning activities in Topic 1, you should now understand that positive working capital is normally a good thing in managing liquidity and profitability. Explain how Wal-Mart manages...

Jul 28, 2022