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Recently, it was announced that two giant French retailers, Carrefour SA and Promodes SA, would merge. A headline in the Wall
Street Journal blared, "French Retailers Create New Wal-Mart Rival." While Wal-Mart's total sales would still exceed those of thef
combined company, Wal-Mart's international sales are far less than those of the combined company. This is a serious concern for Wal-
Mart, since its primary opportunity for future growth lies outside of the United States.
Below are basic financial data for the combined corporation (in euros) and Wal-Mart (in U.S. dollars) in a recent year. Even though their
results are presented in different currencies, by employing ratios we can make some basic comparisons.
Carrefour
(in millions)
Wal-Mart
(in millions)
Sales revenue
€70.486
$256,329
Cost of goods sold
54,630
198,747
Net income
1,738
9,054
Total assets
39,063
104,912
Current assets
14,521
34,421
Current liabilities
13,660
37,418
Total liabilities
29,434
61,289
Compare the two companies by answering the following

Respuesta :

Parrain

Based on the balances given of the companies, Carrefour SA and Promodes SA, and of Wal-Mart, the following are true:

  • Carrefour gross profit rate = 22.5%.
  • Walmart's gross profit rate = 22.5%.
  • Carrefour profit margin = 2.5%.
  • Walmart's profit margin = 3.5%.

What is Carrefour's gross profit rate?

This is:

= (Sales revenue - Cost of goods sold) / Cost of goods sold

= (70,486 - 54,630) / 70,486

= 22.5%

What is Walmart's gross profit rate?

= (256,329 - 198,747) / 256,329

= 22.5%

What is Carrefour profit margin?

= Net income / Sales revenue

= 1,738 / 70,486

= 2.46%

What is Walmart's profit margin?

= 9,054 / 256,329

= 3.5%

The original question asks for the gross profit rate and the profit margin of both companies.

Find out more on profit margin at https://brainly.com/question/10218300.

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