Kroger And Costco And Walmart

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Based on the operating cash flows to current liabilities, Walmart takes the lead. From fiscal 2012-2016, Walmart has consistently had a higher percentage of cash to cover its current liabilities. Kroger usually did better than Costco over this same period except for fiscal 2013, but even in this year Kroger and Costco were pretty much neck and neck. The five year averages for the operating cash flows for Walmart, Costco, and Kroger were 38.85%, 25.11%, and 31.89%, respectively.
However, the quick ratio says the opposite. When inventories are subtracted from current assets, and then current assets are divided by current liabilities Costco is king. Kroger comes in second, while Walmart trails closely behind Kroger. The five-year averages for Walmart, Costco, and Kroger regarding the quick ratio is 0.24, 0.53, and 0.27 times. Therefore, when the inventories (much of which is perishable food items) are excluded, Costco seems to be more liquidable than Kroger and Walmart.
Costco makes enough money to pay
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Walmart has a higher dividend yield than the other companies. Walmart also has the highest operating cycle and cash cycle of all three firms. Costco did not issue dividends until 2014. These differences all reflect their business models, Costco’s wholesale model, Walmart 's hypermarket model.
Much of Walmart 's value comes from its size. It has everything under one roof. This adds value to Walmart, people are more inclined to just go to one store rather than many. They are also adding more online options, which could add even more value to the firm. Costco derives much of its value from its wholesale and membership model. This is their largest appeal and value driver. It gives the consumer wholesale prices, which really adds to the value of each firm. Kroger is primarily a grocery store, they sell groceries at lower prices to people with Kroger membership cards. This is their main value

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