s now more insolvent due to the taking on of more debt and thereby decreasing the equity portion of the companies overall capitalization. At a current debt/equity ratio of .85 Wal-Mart has about 46% equity and 54% debt which is tolerable but could be improved. Wal-Mart is the undisputed industry leader in the discount variety story sector. They consistently show good financial numbers. The only concern may be their increasing trend in using debt financing. They may have a very good reason for it since their market cap is already so high. Issuing more shares is sure to increase their price-earnings ratio as well as possibly decrease their stock price. However the company is still in good overall financial shape.Corporate structure Wal-Mart’s corporate strategies are simple foundational guidelines on how the store conducts business. The first objective is: “customers would be provided what they want, when they want, at a value.” Second: “treating each other as we would hope to be treated, acknowledging our total dependency on our Associate-partners to sustain our success.”1 Both of these strategies are a tribute to Wal-Mart’s mission to serve its customers a good value.The corporate structure is constantly innovating forward, because as soon as Wal-Mart thinks that company can settle, profits and success will die as an outcome. Charged with this mentality Wal-Mart has made several innovations in its time. Most are familiar with SAMS Clubs, Supercenters, and the pharmacies, which make up some of the more successful innovations of the past two decades. Wal-Mart is continuing to innovate by refurbishing old stores and testing new stores such as a drive through grocery store. Much of the changes occur domestically because Wal-Mart is still growing faster in North America than in any other part of the world. This is not to suggest that the company is overlooking international growth, whic...
