The company has a higher degree of leverage and it generally has operating ratios that are slightly poorer than the industry average. The degree of leverage helps the company to expand more rapidly and increases the ROE (which is higher than the industry average). That the margins are in line with the industry average is consistent with the intensity of competition within the industry. Overall, Wal-Mart's numbers are roughly comparable with industry norms, and while its solvency and liquidity are less than competitors, the company also has tremendous cash flow and its growth continues to be strong because of its global diversification. Wal-Mart continues to add cash flows from operating activities. These are generally recovering, having declined in FY2011 from highs in the prior year, but have steadily increased in the past two years. With robust cash flow from operations, Wal-Mart is able to invest in the company. It has high...

Also, Wal-Mart invests some of its cash flow in dividend payments and stock retirements, the latter of which serve to boost stock prices.
Overall, Wal-Mart is a healthy company. It remains a growing entity, which allows it to have higher borrowing and lower liquidity than the industry norms. It is, however, a growing and liquid company. There is little reason for either an equity or debt investor to be concerned with Wal-Mart's finances, given healthy operating metrics and healthy financial condition, both approximately in line with industry norms.

Works Cited:

MSN Moneycentral (2013) Wal-Mart. Retrieved March 8, 2013 from http://investing.money.msn.com/investments/stock-price?symbol=wmt

Wal-Mart 2012 Annual Report. Retrieved March 8, 2013 from http://www.walmartstores.com/sites/annual-report/2012/WalMart_AR.pdf